Even though the S&P 500 recently had its first 10% correction since 2003 and tested its August lows, its 10-day advance/decline line (number of stocks advancing minus number of stocks declining) actually held up rather well. This "higher low" in market breadth provides underlying strength in the index and makes the recent bottom an even stronger support level.
What is even more compelling is that the two sectors that have been the weakest recently -- Financials and Consumer Discretionary -- also made "higher lows" on their 10-day advance/decline lines.
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