Stock market record high masks extreme, ignored trend: Morgan Stanley

Stock
market breadth isn’t as strong as it seems on the surface, Morgan
Stanley says.
Mario
Tama/Getty

• The stock market’s rally to new highs is not an
  entirely bullish story, according to Morgan Stanley’s equity
  strategists.
• The rally has been narrow, as it has excluded some key
  tech stocks that had propelled the market higher.
• Other gauges of so-called market breadth are of concern
  to the strategists.

As the stock
market soldiers on to new highs, some less bullish trends are
brewing under the surface, according to equity analysts at Morgan
Stanley.

They’ve have warned all year that stocks are in a rolling,
drawn-out bear market.

While their thesis appears to fly in the face of the market’s
record highs, they’re pointing to a group of indicators
suggesting a rough patch ahead.

It’s market breadth, used by technical analysts to gauge the
direction beyond what a plain chart of the S&P 500 shows. …

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