The strong market recently went through a mini correction, so let us look at the recent market breadth developments. NYSE 52 week new highs & lows data showed a small uptick in new lows throughout the beginning of August, which has pushed the High vs. Low Ratio lower, see chart.
HL Ratio has recently fallen but stocks still remain in an uptrend
According to this indicator the market breadth is now in neutral territory, neither overbought like it was in middle of July, nor oversold. Mind you, the last time market became extremely oversold was in October 2011 (see chart).
Advance vs decline issues & volume recently became oversold
One of the indicators that did show relatively oversold conditions was the 21-day advance vs. declines together with individual up volume vs. down volume. While the extremely oversold zone was not reached, the internals did fall towards 55% on the chart above.