Chart of the Day - Wednesday, July 17th, 2019

Today's Chart of the Day was shared in a research note from Frank Cappelleri of Instinet (@FrankCappelleri). It's a chart showing the S&P 500 in the top panel, and the number of new highs within the index in the bottom panel. Over the past month or two, the S&P 500 has rallied to record highs. At the same time, breadth, as measured by the number of stocks hitting new highs, has been deteriorating. Frank explains: "A lot of that has to do with Real Estate and Utility stocks pulling back a bit with Bonds. But with the SPX making new highs for a while now, the number of overall constituents doing the same could be higher." Frank is still bullish on the broader market however this breadth divergence is a potentially bearish development that he's watching closely.