Breadth Flush


  • Jason Goepfert

    Jason Goepfert

    Published: 2016-01-20 at 15:47:02 CDT

Markets are now entering "puke" territory, at least in terms of market breadth.

There have been over 1,228 securities on the NYSE that traded to a 52-week low, and it is rising rapidly. It reached 1,342 on August 24 and is getting close to 40% of all issues, a rarely-achieved level.

Even more notable, the Up Volume Ratio on the NYSE is only 3%, meaning that 97% of all volume traded today is in declining stocks. The 10-day average of that figure stands at 26%, if we close as badly as we are now.

Since 1940, there have been only four days that saw an Up Volume Ratio at 5% or below with a 10-day average at 27% or below:

  • August 29, 1966
  • May 25, 1970
  • October 19, 1987
  • August 8, 2011

The average return over the next six months was +17.7%, with all of them being at least +14%.

20160120_breadth



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