The S&P 500 Is Internally Broken

The S&P 500 is internally broken. You don’t see it in price yet, but you can see it in the internals. For weeks I’ve been outlining my concerns of narrow leadership in markets including in late January before the big correction in The Narrow Rally and even this week inTech Cracks before the resumption of weakness this week.

The correction and subsequent bounces have deepened these concerns. Why? Because despite rallies that, for now, have saved the trend in price they have utterly failed to repair the damage in internals and I can show you this with one key chart: The cumulative-advance-decline mix versus the $SPX.

See for yourself, the price advance early in the week rejected precisely at the underbelly of the broken trend line:

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