A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Allen, Re: Quiet Markets............

I've noted for most of March and part of April the Market Cumulative Breadth (advancing issues vs declining issues on a weekly basis) has receded. Here's a graph from BARRON's which appears weekly:

(From the Market Lab section of Barron's)

Note how the Red line flattened out around the start of March. From the election last November to the beginning of March advancing stock issues outnumbered decliners almost every week. Only two weeks out of the last seven have had advancers leading decliners.

This is a rather typical "consolidation" pattern so far. Somewhere in between Fear and Greed is Caution. I think the markets have just reached a steeper part of the Wall of Worry. They need to rest before the next Ascent.