The main thing bulls have going for them right now is liquidity.  There is no sign liquidity is lacking.  Volume and breadth measures have all moved in line with the major exchanges to new highs.

The NYSE breadth dashboard shows confirmation of the latest highs.

nyse breadth

The NASDAQ advance-decline line is also at new highs.

nas.png

It’s also the end of the quarter this week.  This seems like a perfect storm for people buying the dip and jamming into stocks.

However, we’re also seeing some confusing action in the big leaders of the year.  Big cap tech, emerging markets and china are all trading terribly.  These groups were also the most popular spaces in the latest BAML manager survey.  Basically those late to the party are getting punished for missing the moves and not sticking to their guns (you have to avoid compounding errors).

So what outweighs what now?  That’s a good question, I don’t have an answer.  If the market corrects from here, it won’t be because of a lack of liquidity/market breadth.

Trade ’em well