The % of NYSE stocks above their 200-day moving averages has a strong bearish divergence similar to previous plunge-preceding divergences. As BofAML notes, this points to diminishing momentum for market breadth and preceded pullbacks in the range of 15%-20% in 2010 and 2011; increasing the risk for a US equity market pullback in 2014.
It would take a break below 60% for the % of NYSE stocks above 200-day MAs to provide a more dire warning for US equities.
Source: BofAML
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