Fireworks Fizzle As Breadth Struggles

A market that cannot produce more new highs than new lows is not poised for strength

Key Takeaway: The S&P 500 is trying to get back in gear, but the median stock in the index has been unable to even get its head above water on a YTD basis. The latest Weight of the Evidence update continues to argue for caution.

From an asset allocation perspective, equities remain crowded and bonds are unloved. Commodities and cash continue to be ignored.

The Weight of the Evidence reflects the risks but Narrative Affirming Analysis (NAA) is keeping many from absorbing the implications of a market that . . .