We're Still Not Seeing New Highs in Individual Stocks Despite the World Stock Index at an All-time High

The MSCI World Index made a new all-time high last week on yet again a fewer number of stocks making a new 200-day high. In fact, only 7% of stocks in the MSCI World Index made a new 200-day high last Friday. This compares to 8%, 11% and 15% of stocks making new 200-day highs at the last three cycle highs for the Index. Rallies that are coincident with narrowing participation by individual stocks are built on shaky ground unless broad participation picks up. We've been hammering at this point for awhile and will continue to do so until this divergence, which started a year ago, corrects itself.