Be Terrified: Stock Market Breadth Is Weakening

Most of the indexes closed lower yesterday -- except for the Nasdaq 100 Index (below). Internals were negative on the NYSE and Nasdaq as volumes declined from the prior session -- but no support levels or trend lines were violated on the charts, despite some warning signs appearing and breadth weakening over the past few sessions. The data is mostly neutral -- with a couple of caution signals.

On the charts, the Nasdaq Composite Index (below) closed on support and its short-term uptrend line. Any further weakness there would cast a longer shadow for that index. Potential warning signals were registered on the S&P 500, S&P Midcap 400 Index and Value Line Arithmetic Index (see below), as all flashed "bearish stochastic crossover" signals. Those signals were also seen on the NDX and COMPQX last week -- and just prior to their recent pullbacks....212 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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