— Ian McMillan, CMT (@the_chart_life) June 16, 2021
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a chart of the Dow Jones Industrial Average over the past year (bottom), and the % of Dow stocks above their 50-day moving averages (top). We’re continuing to see breadth and momentum deteriorate beneath the surface of the market. Ian points out that while the Dow has drifted to new highs in recent weeks, fewer and fewer of its constituents have been able to keep up with their respective 50-day moving averages. This isn’t just the case for the Dow, it’s happening in the S&P 500 as well. If market internals don’t improve soon, stocks could be due for some turbulence in the weeks ahead.