Fewer Stocks Beating S&P 500 Threatens Rally: Technical Analysis
This article is for subscribers only.
The proportion of U.S. stocks performing better than the Standard & Poor’s 500 Index fell to the second-lowest level in 10 years, a sign its 28-month rally may be faltering, according to MF Global Holdings Ltd.
Only 34.8 percent of stocks in the benchmark gauge beat its performance in the past 20 days as of the end of last week, according to Craig Peskin and John Kolovos, MF Global’s co-heads of technical analysis. They said that’s the second-lowest proportion in 10 years.