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SPX Breadth Is The Problem

Posted by StockBuz on September 23, 2014 at 6:20pm in Technicals

Edited 9/24/14 7:40am

Market breadth has deteriorated badly once again. In fact, breadth hasn't been strong for several months (since early July). Even last Friday, when the market gapped higher on the Alibaba (BABA) mania, breadth was negative — a divergence that proved to be significant so far this week. Cumulative breadth has been a problem since July. Were market makers (MM) merely propping up the market until the IPO went off? Surely a market selloff leading up the launch could risk Alibaba founder Jack Ma to possibly post pone the event; a smear the market wouldn't want to face (not to mention unhappy investors).

I'm sure Jack Lew's comments at the G20 summit that he is pursuing methods to curb tax inversions (and soon) along with funds approaching end of their fiscal year is not helping matters.

Cyclicals (XLY) and consumer staples (XLP) experienced big selling today; the former closing below it's 50d. Retail (XRT) also closed below the 50d; filling the August gap howev

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