This is a Huge Sign the Markets Aren't Healthy

The S&P 500 index traded above 1,900 Friday, but there are still signs that all may not be healthy in the markets.

The market is making new highs on the backs of fewer and fewer stocks. The one-month daily average of stocks hitting 52-week highs is currently about 26. One year ago, that number was about 101. In other words, we've gone from1 out 5 stocks in the S&P 500 hitting highs to just1 out of every 19.

"If you look at the breadth, we've seen a pretty amazing amount of deterioration just since last May," said Mark Newton, chief technical analyst at Greywolf Execution Partners. "It's dramatically down from what we've seen over the last year. And, that is a concern."

More