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As a bull market reaches an exhaustion point, market breadth indicators often tend to diverge from the price action of the benchmarks. This “breadth divergence” occurs as leading names begin to falter, and initial selling drives some stocks down to new swing lows.   Today, we’ll review three market breadth indicators, outline…

It is a bull market for stocks. On the chart below, the S&P 500 SPDR (SPY) recently broke rim resistance of a cup-with-handle pattern and is trading near a 52-week high. The S&P 500 EW ETF (RSP) recorded a new high in late September and is leading the market since…