Market breadth warning for US stocks

Low and declining market breadth in the S&P and Nasdaq is a significant warning signal for US stocks, says Walter Zimmerman at United–ICAP.

Market breadth is now near an all-time low with just 6 shares accounting for all the gains in the S&P and Nasdaq this year. These are companies such as Amazon, Apple and Facebook who’s share prices are now looking high, says Zimmermann. In addition, the MSCI World Index now has an Advance/Decline line 100-day moving average approaching the lows seen in 2008. Below is a list detailing when some of the world’s indices last reached new highs.

Nov 2014
Dow Transports

January 2015
Dow Utilities

March 2015
Nifty
India

April 2015
Dax
All Ord. Australia
FTSE100

May 2015
Dow Industrials
S&P500
NYSE Composite

June 2015
Shanghai
Russell 2000

July 2015
Nasdaq
OEX