LIVE MARKETS-Broader market on the back foot, but might bulls catch a break?

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

BROADER MARKET ON THE BACK FOOT, BUT MIGHT BULLS CATCH A BREAK?

The NYSE composite .NYA has now fallen as much as 7.3% from its November 29 record intraday high, and 6.5% from its November 29 record closing high.

Indeed, the broader market has been on back foot, and this is leading to concerns that, at a minimum, major indexes will see full-fledged corrections across the board.

That said, one measure of the NYSE's internal strength, the McClellan Summation, has now essentially reached a support level, suggesting the potential that the market may be on the verge of a surprise recovery:

The McClellan Summation is a running sum of the McClellan Oscillator. The McClellan Oscillator is a closely followed breadth/momentum measure based on advancing and declining issues.

The Summation peaked on September 30 at +4,324. It then diverged into the NYA's November peak.

On Monday, the Summation ended at -2,031, or a fresh low back to mid-November 2023.

The support line from this measure's October 2022 trough is now around -2,125.

Of note, Summation lows in October 2022 and October 2023 were V-bottoms - after protracted declines, the measure suddenly vaulted to the upside, reclaimed its 10-day moving average, and trended higher.

Thus, bulls will now want to see the support line act as a floor, leading to an upward reversal in the Summation. A rising Summation can coincide with a return of broader market strength and underpin a renewed NYA advance.

A Summation break of the support line can suggest the potential for much greater NYA internal damage. The Summation's October 2023 low was at -4,308, and its October 2022 trough was at -6,178.

(Terence Gabriel)

*****

FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

BONDS ENTER FIFTH YEAR OF BEAR MARKET: TIME TO BUY? - CLICK HERE

UK ON INVESTORS' RADAR DESPITE NEW YEAR SELL-OFF - MS - CLICK HERE

WALL STREET POISED TO BUY MORE EUROPEAN BANK SHARES - UBS - CLICK HERE

EUROPEAN SHARES RISE AFTER U.S. TARIFF PLAN TOUTED - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES JUMP, U.S. TARIFF PLANS IN FOCUS - CLICK HERE

BONNE CHANCE, BAYROU - CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)