Oddities increase

We've noted repeatedly that up until recently, participation in the rally has been stellar. That's changed in the last week or so as fewer stocks are keeping up with the index. Preliminary data shows that the S&P 500 closed at a 52-week high on Monday and yet fewer than 45% of its member stocks managed to close above their short-term 10-day moving averages. That's happened only 10 times since 1928. This kind of sketchy behavior is exactly what bulls do not want to see consistently given the record level of speculative activity.