Market is in correction/consolidation mode.
What we are looking at is growing breadth divergence. As markets continued to go up, fewer stocks are leading the advance. That in itself is never a rally killer.
If you see the T2108 you will see this divergence clearly. The T2108 made a high in January and since then it has been in downtrend. For a broad based rally the T2108 needs to start going up. The Nasdaq stocks continue to act well.
Divergences in themselves do not indicate end of rally , but they indicate pause in rally and momentum in some sectors.
So far selling is muted. So breadth on MM is holding up , but if we see series of 300 plus days to downside, it would indicate more deeper correction.
As of now the longer term trend is intact but shorter term trend is pullback/consolidation. Stocks continue to hold up well.
So let us see how the move progresses.
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