BREADTH FIGURES WEAKEN -- MARKET MAY BE DUE FOR A PULLBACK

S&P 500 SHOWS SOME NEGATIVE DIVERGENCE... Stocks are ending the week in a mixed fashion.  The Dow Jones Industrials are weakening, while the Nasdaq 100 is hitting a new record.  That being the case, this message will focus on the S&P 500 which is in the process of testing its early November high.   One area of possible concern on a short-term basis is its 14-day RSI line in the upper box which is starting to weaken at its overbought reading of 70.   In addition, its daily MACD lines in the lower box have also turned negative.   Neither carries major significance.   But may be hinting that the SPX is due for short-term pullback.   Breadth measures are also starting to weaken.

AD LINES WEAKEN...Two different versions of advance-decline figures are shown below.  And both show short-term weakness.   Chart 2 shows the NYSE Advance-Decline line falling to the lowest level in a month.  That means that losing stocks outnumber the number of winning stocks during November.

Chart 3 shows the NYSE Common Stock Only Advance-Decline Line pulling back as well.   Neither AD line has fallen enough to signal that market uptrend is in serious trouble.  But they have slipped enough to suggest that the market's short-term uptrend is starting to weaken.  Sector  performance has also weakened.

SECTOR BREADTH IS ALSO WEAKENING...A study of sector performance over the past week also shows short-term weakness.    Eight sectors are declining during Friday trading, while only three are gaining.  The winners include technology, utilities, and consumer discretionary stocks.   Everything else is losing ground.   For the week, seven sectors have lost ground, while only four are gaining.   There again, no serious warnings are being given.   The fact that most sectors are losing ground this week, however, is another sign that the market's short-term trend may be weakening.