Twitter was abuzz with the view that the New Highs on the NYSE Composite stocks were falling off a cliff. That's not true.
(Updated chart)
In general, a stock index is deemed strong (bullish) when Net New Highs is positive, which means new highs exceed new lows. Conversely, a stock index is deemed weak (bearish) when Net New Highs is negative, which means new lows exceed new highs.
That said, I'm not bullish on stocks right now. In fact, to point out one example, the action in the Nasdaq-100 as tracked by the Powershares QQQ Trust (QQQs) was pretty bearish today, as it tried to retake its 50-day moving average and failed ... again.
(Updated chart)
In general, a stock index is deemed strong (bullish) when Net New Highs is positive, which means new highs exceed new lows. Conversely, a stock index is deemed weak (bearish) when Net New Highs is negative, which means new lows exceed new highs.
That said, I'm not bullish on stocks right now. In fact, to point out one example, the action in the Nasdaq-100 as tracked by the Powershares QQQ Trust (QQQs) was pretty bearish today, as it tried to retake its 50-day moving average and failed ... again.
We'll see if stocks can move from where they are now, which is stuck in the mud.
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