dailynewsnblog
The S&P 500 index has breadth issues and that is a warning sign for investors, David Rosenberg, founder of Rosenberg Research & Associates Inc. said in a note on Oct. 8. The S&P 500 hit a new high this week, but several important metrics have deteriorated between then and the last time the index peaked on Aug. 13, Rosenberg said. For example, nearly 75 per cent of industry groups have declined, the equal-weight index is down five per cent bank and real estate subsectors have lost more than 10 per cent. Since August, few stocks are trading above their 200-day moving average, a move that is considered a bearish signal. “Market breadth tends to lead prices, and right now it is flashing a warning,” Rosenberg said.
