Jump to new high on negative internal momentum
I noted yesterday that despite at least moderate gains in the major equity indexes, and new highs to boot, small-cap stocks were relatively weak and dragging breadth metrics lower. As a result, the S&P 500 rose more than 0.75% and to a new high, but the McClellan Oscillator is still in negative territory.
This is not a typical situation, and preceded weakness with consistency over the next 2-8 weeks. Even recent years, with some spectacular momentum runs, saw consistent weakness during the next 2-4 weeks.