US Stocks Make New Weekly Highs, but Breadth (Again) Fails to Confirm

Stocks in the US made a new weekly closing high last week, but some breadth measures failed again to confirm the strength. We typically like to see the percent of stocks making new cyclical highs confirm new cyclical highs in headline indices. We also like to see the number of advancing stocks expand along with headline indices. As the below charts demonstrate, we are seeing divergences between our breadth measures and stock index performance of the sort we saw in 2011.