While the S&P 500 continues to move higher, the number of stocks participating to the upside continues to decline. In other words, market breadth is deteriorating. However, it has been doing that for quite some time already, and, as we all know, we should not swim against the tide. Nevertheless, I have become increasingly interested in the continued narrowing of market breadth over the past few weeks. Declining New 52-week Highs One of the first charts in my chart list is a chart of the S&P 500 with the new 52-week highs. The decline in new 52-week highs is very visible. In and of itself, it is not a major sell signal, as this metric can decline while the market moves higher for quite some time; for example, in the second half of 2021. The peak in new 52-week highs occurred in May-June and then declined into December while the…
