“At BCA Research last week, analysts in a note posed the question: “Does the recent mini crash in the high-valuation sectors signify the beginning of major trouble on Wall Street?” Their answer: No. “Such localized shakeouts are an inherent part of any bull market.’… Hedge-fund managers tend to pay close attention to the stocks held by rivals…Aware that so many funds held some of the market’s most expensive and speculative shares, there was a scramble to be the first one out the door.” Story at…
What might pop it? The same thing that popped it last time - the Federal Reserve.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of stocks advancing on the NYSE increased to 59% at the close. (A number above 50% for the 10-day average is generally good news for the market.) New-highs outpaced new-lows Tuesday. The spread (new-highs minus new-lows was +124. (It was +83 Monday. The 10-day moving average of change in the spread was +12. In other words, over the last 10-days, on average, the spread has INCREASED by 12 each day. The smoothed 10-dMA of up-volume remains UP as of Tuesday. The internals are now positive on the market.