After making a run toward 11K (10,988) the Industrials backed off, as did the S&P500 (top tick 1187.73).
We had to flag this chart from Strategas Research technician Chris Verrone, in a morning note out Monday. Here’s the squib that accompanied it:
“With the number of stocks making new 52-week highs now rolling over, we believe we’re likely to see some increased volatility over the next several weeks as near-term divergences are reconciled. As the chart at left illustrates, the current backdrop is reminiscent of the October ’09 and January ’10 periods.”
In short, the number of stocks hitting new annual highs is falling, and that sort of thing has preceded some of the recent dips we’ve seen in stocks....MORE