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Stock market veterans love to say “the trend is your friend, until it ends.” And some investors worry that may come true soon even with Wall Street at record highs.
A shift has taken place beneath the stock market's surface in recent months, and that means the all-time highs in stocks might be in jeopardy, analysts say.
Wall Street watchers point to this concern: Fewer stocks are part of the market rally, which is often viewed as a warning sign for investors.
What does that look like? Take, for example, that the percentage of NYSE common stocks trading above their 30-day moving averages dropped to 45% on July 2, down from 83% on May 7, according to Lowry Research, a technical advisory service.
That would suggest choppiness for stocks in the coming months, analysts say.
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