Manic Breadth

Futures are indicated a bit lower this morning after five straight days of gains. The only economic indicator on the calendar today was CPI for December which came in right inline with expectations at both the headline (-0.1%) and core levels (0.2%). 

Similar to the swings in the equity market from the sharp leg lower in late December to the massive rally to kick off this year, breadth has also swung from one extreme to another in the last two weeks. Take the S&P 500’s 10-day A/D line, for example. On Christmas Eve, it clocked in at -2,440, which was the most negative reading in this indicator since 8/8/11 and the fourth most negative reading going all the way back to 1990! Ten days later, the 10-day A/D line totally reversed to a positive reading of 1,938, which was the most positive reading since July 2016 and the ninth strongest since 1990. That kind of a reversal from one of the most negative readings in 30 years to one of the most positive is pretty much insane!

With the 10-day A/D line shifting from -2,440 on 12/24 to +1,938 on Wednesday, it was the biggest 10-day change in the indicator on record, and it wasn’t even really close. The next closest reading to the upside was on 12/5/08 when it had a 10-day change of 3,755.



Read today’s Bespoke Morning Lineup below for major macro and stock-specific news events, ...

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