I will start off showing the Zweig panel for the markets as they exist since the close yesterday:
They are dangerously in neural territory hitting against the decaying trend line drawn in the first two charts, showing either a burst to resume the bull run or a continual decline. Moving to the new highs:
These are the NYSE, Nasdaq Market and Russell respectively. We are still showing a averaged decline which is slowing. On the Rut and NYSE we have now put in 3 days of greater new highs which can indicate a trend change. A better trend change indicator however is a new 5 day high which is basically what the magic number is so for today we would like to see a NYSE new high number at close to be greater than 78.
One of my concerns about the NH indicator is that the number are all so small, a single new high has a huge effect on the values. I have been doing some research on my StockFinder which is great for creating new indices on broad-based stocks lists. The following indicator takes the universe of stocks contained in the Russell 3000. So it includes the small caps as well as the large caps.
There are 3 indicators here which look for the number of stocks on the Russell 3000 that have made a new 10 day high vs. a new 10 day low and the bottom pane is the difference. The idea was based around Dave Fulkerson’s suggestion to look at the NYSE difference. This indicator shows that we have been four days now making more ten day lows and highs and the drift is in continuing weakness waiting for an upward thrust to change the momentum. Something new for us to watch and compare.
happy trading
-RLT
