Although the Nasdaq is making new historical highs, the market internals do not support these tops. Despite the index making new all-time highs, the amount of stocks doing the same is rapidly going down.
Although the Nasdaq is making new historical highs, the market internals do not support these tops. Look at the chart below:
source: Stockcharts.com
The lower panel of the chart shows the amount of stocks establishing new 52-week highs. Note that despite the index making new all-time highs (the blue arrow on the upper panel of the chart), the amount of stocks doing the same is rapidly going down (the red arrow).
This is not a typical pattern printed by a healthy bull market.
This article is not an investment advice. I am not a registered investment advisor. Under no circumstances should any content from here be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational purposes only.
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