Gavekal Capital: Advance/Decline Not Confirming MSCI Europe Gains

Thursday, April 10, 2014

Advance/Decline Not Confirming MSCI Europe Gains

As we touched on last week (here), breadth of participation in continued market gains--as measured by the advance/decline ratio-- is at very low levels in MSCI Europe:

Some sectors are exhibiting more extreme divergences than others. Moves in Consumer Discretionary, Financials, and Industrials (all above old highs in price) look particularly disconnected from the 200-day measure of advancing stocks versus declining stocks:

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