Thursday, February 21, 2013

Critical reading in the hi-lo indicator

The number of NYSE stocks making new 52-week lows on Wednesday [Feb. 20] was 40, which was the highest number November 16.  There were 43 new lows on Thursday.  Remember that 40 new lows is the historical dividing line between a healthy and an unhealthy market.  A few days of more than 40 new lows would indicate an unhealthy amount of internal selling pressure and a possible interim trend reversal, so we’ll need to watch this indicator closely in the next few days. 

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