Does Market Breadth Represent Overheated Stocks?

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Oct. 9 (Bloomberg) -- On today's "Off The Charts," Bloomberg chief markets correspondent Scarlet Fu compares the percentage of stocks within 10 percent of 52-week highs in global markets. She speaks on Bloomberg Television's "Market Makers."

Was mentioning earlier in the hour.

But our chart here is from the billion global markets.

More than three quarters of the members are trading within 10% of their 52-week high.

This shows how the u.s. leads the way of.

The uk comes pretty close.

More than three out of four stocks in the s&p 500 within 10% of the hide.

If we can show how this has increased over time, that really tells the story as well because it shows how you come back from the recession.

We are still holding onto that high level.

So, we are not getting the charts.

What ultimately is the point?

It is pretty lopsided.

The marketplace is very lopsided.

Clear point has done some historical work on this.

History tells us that there will be a short time of consolidation.

Since 1991 according to his data, there are 19 months where the conditions were the same.

75% were within 10% of their highs.

The s&p 500 stayed flat.

This time is different because we have these monster deadlines we are running up.

We have a government shutdown.

Equities don't tend to fare very well when you have such positive market.

Given some of the apocalyptic predictions, maybe a flatlining s&p 500 wouldn't be where things would go otherwise.

A lot of people have been really amazed by how resilient u.s. stocks have been up until this point.

Speaking of resiliency, we

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