Chart from the Day: Generals Rally, But The Army Is In Retreat

While the indexes move toward resistance, new lows remain more numerous than new highs

Mega-caps are helping the indexes bump up against their highs, but more than 20% of NYSE+NASDAQ stocks have made new lows in the past 2 weeks - that's more than twice as many as have made new highs.

Why It Matters: The market generals being strong and leading the way higher is no problem as long as the army is following along behind. Issues emerge when the leaders take the field, but the masses head for home. A lack of broad support leaves the indexes vulnerable to correction. That seems to be the case right now. New lows have exceeded new highs for nine consecutive weeks and the percentage of stocks with 50-day averages above their 200-day averages has dropped to its lowest level of 2023.