Declining breadth - defined by the percentage of S&P 500 stocks trading above their 50-day...

|By:, SA News Editor

Declining breadth - defined by the percentage of S&P 500 stocks trading above their 50-day moving average - is flashing a warning, writes The Fat Pitch. In late January, both the index and the breadth measure were rising, but the S&P since has made new highs while breadth has dropped off. This sort of divergence doesn't last for long and tends to be resolved by a 5-10% decline in stocks.