Bob Pisani at CNBC all day today noted the lack of leadership reflected by a contraction of NYSE-listed issues hitting new 52-week highs, this at a time when the NYSE Composite is trading at its high for the year. This being a foreboding technical condition that, I likewise have noted over recent weeks, an update of the situation is in order...
Not a pretty picture. Negative divergences galore. This on top of the fact that, such a thin number of listed-issues have reached new 52-week highs over the past year (meaning the majority all the more are being left to suffer under the pressure of their own weight ... a burden that apparently is affecting a growing swath of issues judging by shrinking new 52-week highs since late-June).
With such expanding, positive interest in stocks absent, risk of collapse is all the more elevated, then. Only expanding interest can sustain an advance. Without this the market is at risk. Being a moment when the market's collapse is believed in store, abundant evidence of underlying technical weakness such as is revealed above is best not ignored...
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