Professor Elam

While the S and P and Dow Industrials have made new highs, breadth or the number of stocks participating has declined significantlly. This measure shows the number of stocks out of 500 in the S and P that are above their own 50 day Moving Average. That measure peaked back in September. It has not been able to get above the 50 day MA of this measure. So the broader participation is waning. We look for lower prices ahead.  At bottom the MACD has flattened and looks to be heading down.