BAML: Breadth Still Healthy

Bank of America Merrill Lynch’s Stephen Suttmeier’s latest full-market technical overview is out and he remains constructive on the bigger trend still in-force going back to the 2009 low. The technical damage done in the equity markets has not changed much for the big picture and the repair of last week has gone a long way toward validating the old channel.

One of the primary bullish factors is market breadth, which regular readers know that I watch very closely as well. When markets are advancing, we want them doing so with a healthy underlying push being accomplished by many stocks in many industries. When rallies begin to narrow, they become long in the tooth and primed for a reversal.

Here’s BAML’s read of what it considers to be a non-traditional breadth indicator – the S&P 500 equal-weighted vs the plain vanilla index:

Market breadth indicators remain constructive after new 52-week highs and the stocks only advance-decline lines confirmed the new S&P 500 highs in late May.

The S&P 500 Equal-weighted (EW) Index  relative to the S&P 500 Market cap weighted Index is a non-traditional  measure of market breadth that remains  bullish. When the S&P 500 EW is stronger than the S&P 500, this suggests that the market rally is driven by the bulk of the stocks in the S&P 500 and not just the  larger cap stocks in the index.  Continuing to hold the February and April 2013 lows in the S&P 500 EW vs. the S&P 500 keeps this pattern intact. The risk to the market would be if this relative ratio broke down below those supports and suggested narrowing market breadth.

breadth

Source:

Market Analysis July 1st 2013 – Bank of America Merrill Lynch

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. KALYAN MATKA commented on Sep 14

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  2. w88 commented on Sep 21

    … [Trackback]

    […] Here you will find 54681 more Info to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  3. bitcoin evolution review 2020 commented on Sep 23

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  4. immediate edge reviews commented on Oct 01

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  5. porn movie commented on Oct 18

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  6. Difference Test Automation RPA commented on Nov 12

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  7. knockoff Best Watches commented on Nov 16

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  8. รับทำเว็บไซต์ commented on Nov 30

    … [Trackback]

    […] There you will find 99905 additional Info on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  9. scotia bank online login commented on Jan 10

    … [Trackback]

    […] Here you can find 22610 more Info to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  10. https://www.replicasdeespana.es/ commented on Jan 14

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  11. wig commented on Jan 17

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  12. Regression Testing commented on Jan 18

    … [Trackback]

    […] Here you can find 41268 more Information to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  13. rolex replika commented on Jan 19

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]

  14. Gigabyte GA-P41T-USB3L manuals commented on Jan 21

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2013/07/01/baml-breadth-still-healthy/ […]