I’ve had a few questions about my Capitulative Breadth Indicator (CBI). (For more information see “CBI” label on the right hand side of the page.) When the market sells off hard it typically will begin to rise. So far in this selloff it hasn’t budged. Still zero.
I track CBI percentages for 24 sectors each night in the Subscriber Letter. As of Thursday’s close here was the breakdown: (click on table to enlarge)
So while there has been some sharp selling over the last week or so it isn’t the type that my indicator would consider capitulative. This doesn’t mean the market won’t bounce. It just means we don’t have evidence from the CBI that it will.
To put the above numbers into perspective, below is a snapshot from the November 20th close: (click on table to enlarge)