Chart of the Day - Friday, June 28th, 2019

Today's chart of the day was shared in a blog post titled: "Is Broad Stock Market Leading or Lagging?" by Dana Lyons (@JLyonsFundMgmt). The chart shows one commonly used breadth indicator, the Value Line Geometric Composite Index. It tracks the performance of the "median" stock across 1,675 stocks within the NYSE. As you can see, the Value Line Composite has failed to print a new 52-week high in 2019 despite the S&P 500 at all-time highs. On the other hand, the NYSE Advance-Decline Line, another popular breadth metric, is at a 52-week high. Other breadth metrics like the NYSE percentage of stocks above their 200-day moving averages are also diverging from the S&P 500. Clearly, the most commonly used breadth indicators are sending mixed signals, making it difficult to analyze the internals of the market right now.