Golden5: Breadth: YEAREND ASSESSMENT

Breadth measures the broad market participation in Market moves. "A good tide rises all boats"

Our proprietary Indicators take a standard institutional "must hold" portfolio of approx 50 large cap. names (the IM portfolio) and applies our analytics.

Pls follow #1 to #5 to observe yourself the deterioration of market breadth the last rally has encountered.

Another very popular Indicator is the McClellan oscilator. Here we see the same findings as above.

A 3rd way to look at breadth you will find below.

The top charts shows a medium to long term MACD on the Advance/ Decline line (Momentum on Breadth).

The middle chart shows the 10 day Advance/ Decline line.

the bottom chart shows the 10day Up-Down Volume line

No matter how you slice the data, whether you take our IM portfolio or the broad NYSE, you see a broad deterioration in market breadth.

All it tells you that only a smaller and smaller number of shares is driving the market up and that usually the divergences tend to project corrections. Also bear in mind that the larger the divergence the bigger the expected correction.