I have talked recently about signs of a peak in the business cycle, but the stock market is ignoring them.
The chart above is that of the difference between the 52-week New Highs and the 52-week New Lows for the NYSE.
The rally in 2013 was accompanied by a huge expansion of new highs vs. lows and this is still the case on the latest surge to historic highs for the S&P500. This often signals short term capitulation, but the longer term implications are positive for the overall bull.
For me, the latest bull leg has began at the end of June, after the 7% correction, and it is up 12% as of Friday. A 16% rise, which is quite average, would take the market to 1800.
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