Intraday S&P 500 chart not getting great breadth confirmation this morning with a lower short-term high in new 52wk highs. pic.twitter.com/CkYN0Nrj92

— Andrew Thrasher, CMT (@AndrewThrasher) April 17, 2020

Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). It is an hourly chart showing the number of new 52-week highs on the NYSE, along with a chart of the S&P 500 over the past three weeks. Andrew points out that breadth, as measured by the number of NYSE new 52-week highs, is failing to confirm the higher high that was made in the S&P 500 today. Bulls want to see this breadth indicator confirm new highs in the S&P 500, as it had been doing throughout the recent leg higher, up until today. This negative breadth divergence indicates a lack of broad participation, which tells us that this vicious rally off the lows may be running out of steam.