[isatrader]

It looks like the participation as the US markets hits new highs is dwindling. Maybe it is the big ticket stocks that are driving up the indexes to new highs. Be interesting to see when these start to tail off also.

I'm interpreting it differently as I see a number of positives in the breadth. For example the Cumulative P&F breakouts - breakdowns is hitting new highs again, after making a higher low following the October flush out. Various advance decline lines are hitting new highs; the moving average breadth charts are all back above the 50% level again after mostly flushing to below the key 30% back in October, and the small and mid caps are attempting to make Stage 2 continuation breakouts after making higher lows in December, which are key components for the broad market to rally. So to me the Weight of Evidence seems to be turning fairly positive currently, and hence, I'm hopeful for a new leg of the rally in the new year and am positioning to be ready to make new buys if my current test buys in my portfolio start to make some headway.