Year-end oddities
In January and February, we saw a big cluster of odd readings, mostly involving breadth. While the big indexes were hitting new highs, there was significant weakness under the surface, which preceded the pandemic-induced crash. Oddities surfaced again in mid-August, preceding a quick run-up then two months of chop and decline. Since then, internal participation has been pristine...until the last couple of weeks. Increasingly, we're seeing odd readings once again. Thanks in large part to weakness in small-cap stocks, breadth was horrible on Tuesday, with Up Issues and Up Volume both under 40%. That's rare for a day the S&P 500 was so close to a high, and not a great sign for the next 1-2 months.

