Investor beware. Buying into this rally could be costly.
The benchmark S&P 500 index has risen more than 10 percent since hitting its Feb. 11 intraday low of 1,810.1. However, longtime bear Brad Lamensdorf said in a report released this month that the market is likely to take another leg lower.
"The number of 52-week highs was nonexistent, which indicates a broad lack of leadership. The pathetic bounce speaks to the narrow nature of the advance," said Lamensdorf, co-manager of Advisor Shares Ranger Equity Bear ETF, in the report.
Since Feb. 11, only 68 stocks have hit new 52-week highs, while 107 have plunged into fresh 52-week lows, as of Monday's close. In 2016, just 84 stocks have reached new 52-week highs, and 285 have hit new 52-week-lows.