Line chart showing the S&P 500 index (top panel) alongside the percentage of stocks making new 52-week highs and lows (bottom panel, 5-day SMA). Key annotations highlight periods where new highs outpaced new lows (bullish signals) and vice versa (bearish signals). The most recent section shows new highs beginning to surpass new lows as new lows collapse to near zero—labeled as "Early Signs of Internal Recovery. source: www.wallstreetcourier.com
Smart Money buying and a stabilizing S&P 500 raise the question: is a durable recovery forming?
New lows have collapsed - now all eyes on new highs. If they follow, it may confirm that risk appetite is returning. Market breadth holds the clue.
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