While buyers have been quick to step in on any weakness in the last several days, it is beginning to look more and more like they have headed out early to the beach this Friday. The S&P 500 is down nearly 80 basis points (bps) on the day, which doesn’t sound like a whole lot, but breadth has been abysmal. The S&P 500’s net Advance/Decline reading on the day is -413, meaning that there are 413 more stocks that are down today than up. That’s the weakest single day breadth reading for the S&P 500 since January 13th!
Today’s negative breadth reading also qualifies as an ‘all or nothing day’ for the S&P 500. If you are a long-time reader of our site, you are probably familiar with the term all or nothing day. For those that aren’t, we define an all or nothing day as one where the net number of advancing issues in the S&P 500 for a given day is either above +400 or below -400. While the year started out with a lot of all or nothing days, ever since the February lows, they have been few and far between, so today’s reading is a change of pace. As shown in the chart below, today’s reading (provided it holds) will be the 15th all or nothing day for the S&P 500 this year. At this rate, 2016 is on pace for 34 all or nothing days, which would actually be fewer than last year’s total of 38, but would still qualify as the sixth most for a year dating back to 1990.