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Pay Attention To Market Breadth This Week

The following (green highlights) is a brief excerpt and one of the four charts that appeared in our Friday January 27th report entitled, The Week Ahead: 4 Charts To Watch For US Stocks.

Asbury Research subscribers can access the entire report by logging into our Research Center at www.asburyresearch.com.

This chart displays the S&P 500 (SPX) daily since 2011 in the upper panel with the 26-Week New Highs/New Lows Ratio plotted in the lower panel (blue line). This measure of market breadth is derived by dividing the new highs in the NYSE Composite Index for the last 26 weeks by the new highs plus new lows.

The red highlights on the chart show that this indicator is currently hovering at an historically high extreme of 90%, indicating an extreme number of new 6-month highs being made relative to the number of new highs plus new lows, which has previously either coincided with or closely led most every near term peak in SPX during the past year.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.