Breadth is beginning to turn negative as the financials and retailers stop participating in the rally.  Is breadth pointing to a downturn? The market has topped near each of the previous points where breadth topped 70 RSI.

It’s important to note that one of the few times where this indicator failed was in 2003 when the new bull market began.  The RSI turned decisively above 70 and the breadth failed after a 20% rally.  The market, however, never took a breather.  The indicator has yet to fail during this bear.  The key to the future remains: are we in a new bull market or is this a bear market rally?