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.
All Ord. Australia