All-time highs and the S&P500
Jason’s question got me wondering about the relationship between the number of stocks making new all-time highs compared to the market. So I collected the numbers from my database since I started keeping track in late 2005 and plotted them beneath a chart of the S&P. Here is what it looks like:
I find a couple of things interesting. One is that the number of all-time highs seems to spike right before a big drawdown in the market. And two, the number of all-time highs has been trending down since early this year even though the market has been making new recent highs. This could be a warning sign.
