Just like that, is everything all better with the market? While it may seem that way after yesterday’s big gain, there’s not much follow-through today as futures are lower. The only pocket of strength is in the Nasdaq where futures are indicated modestly higher on the heels of strong earnings results from Netflix (NFLX). Housing Starts and Building Permits were just released, and both came in modestly weaker than forecast.
Yesterday really was a pretty impressive day in terms of market breadth as the S&P 500’s A/D line was the strongest since March. More impressive, was the fact that every component of the Dow Industrials, Transports, and Utilities indices traded higher on the day. That type of breadth is something we haven’t seen since the Monday before the 2016 Presidential election! Years ago before ETFs started to dominate the market, that type event where every Dow Industrial, Transport, and Utility component traded higher on the day, was pretty monumental in the market.
Nowadays, though, it isn’t quite as impressive a feat. As shown in the chart below, there have been over 50 prior occurrences since the lows of the financial crisis in March 2009. Looking at where they occurred in various stages of the market shows no clear pattern of similar moves indicating a notable trough or peak.
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