The Market's Gains Are Being Driven By Fewer And Fewer Stocks

As stocks continue to fall from their all-time closing highs, UBS strategist Julian Emanuel offers an interesting chart looking at the internal dynamics of the NYSE-listed stocks.

"[I]n an environment where the S&P 500 Index has remained near all-time highs yet the number of "strong" stocks is declining (Chart 7)," said Emanuel.

The dark purple line represents the percentage of NYSE stocks closing above their 200 day moving averages, which is trending down.

Meanwhile, the 200-DMA of all of those stocks is trending up.

For what it's worth...