Larry, my thoughts on the new highs/new lows tonight are:
January 24, 2001 COMP was 2892
January 7, 2002 COMP was 2099 (793 point Diff, 27.5% Dif)
May 22, 2001 COMP was 2328
April 10, 2002 COMP was 1772 (556 point Diff, 24% Diff)
Jan. 24, 2001 NDX was 2771
Jan. 7, 2002 NDX was 1710 (1,061 point Diff, 38% diff)
May 23, 2001 NDX was 2074
April 10, 2002 NDX was 1375 (699 point Diff, 34% diff)
The expanding new highs are being fueled by non-techs due to sector rotation out of tech. The tech-laden NDX is acting as a drag on the overall index relative to where it was a year ago. The new highs are in the non-techs, which were out of favor until after the 1st quarter last year.
Of course, we can all see this just by looking at the list of new highs. That new high list should top out soon as the regional bank index hits resistance as well as a double top. The continued low interest rates combined with the improving economy have helped fuel this run for the regional banks, IMO. |
