Chart of the Day – Friday, July 12, 2024

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— Walter Deemer (@WalterDeemer) July 12, 2024

Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer).

• Despite yesterday’s stumble, the S&P 500 ($SPX) printed an all-time high for the second consecutive week, rising +0.86%. It’s closed higher in 10 of the past 12 weeks, rising +13%.

• Breadth dramatically improved on Thursday and Friday. Walter points out that the NYSE Advance-Decline Line broke out to an all-time high for the first time in two months yesterday.

• This breadth indicator often leads the S&P 500 higher or lower. It peaked in May and stalled while the S&P 500 made new highs, forming a negative breadth divergence. However, this week’s breakout eliminates that bearish divergence.

The Takeaway: Breadth dramatically improved this week. The NYSE AD Line broke out to all-time highs for the first time in two months, eliminating a bearish divergence that had been in place since May.