Breadth Participation by Market Cap
- Posted by DynamicHedge
- on October 29th, 2013
Large cap and blue chips were instrumental in getting the market to all-time highs back in September. As the rally has extended, large cap stocks have fallen out of favor in exchange for their high beta small cap counterparts. As you can see from the charts, small cap equities primarily responsible for the recent leg up.
The standout story is the Dow. It failed to make new breadth highs on the September run, and the 50-period moving average is only just barely turning higher. I tend to give disproportionate weight to this bellwether index. As the market is ripping higher, what is the Dow divergence trying to tell us?
Disclaimer: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please click here for a full disclaimer.
DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
- S&P Index Additions
- Marketview: Liquidity Needs
- Howard Marks: The Race is On
- New Signal in AMAZON Noise
- Marketview: Momentum Continues
- Marketview: A Quick Look at Trends
- Marketview: Bull Market Basking in the Sunlight
- SPY Down 1%: Quantified Emotion
- Marketview: No Fun Market
- FOMC Meeting Announcement Precedents