A couple of weeks ago as long-term breadth turned up in the midst of an on-going bull market suggested that the bellwether stocks that have so long mattered would move up again.
That didn’t happen.
My “bellwethers” are TSLA, NFLX, AMZN, GOOGL, TWTR, BIDU, AAPL, FB, NVDA, BABA.
Long-term breadth turned down the next day and scattered the bellwether cluster — some up, some down, some going huh, what’s happening. Four days later they again tried to rally (see the chart panel below) but Friday they were hit harder than ever. With exception now of AMZN, they are all falling apart, led by the 20% disaster in FB and now the equivalent in TWTR. This usually does not happen in bull markets.
Chart by chart they look vulnerable to more decline. If they follow through to the down side this coming week, one will have to question if this is still a bull market or is the bear market beginning to emerge.