Since my model looks at the relationships between indicators, there is no simple answer. Plus, I'm hesitant to give out much information since I've put alot of work into this model. But, one example can be seen in the plot below of NYSE New Highs - New Lows (symbol $NYHL on stockcharts). When $NYHL is hitting new highs and the market is not, to me that is an indicator of a topping process. It means that in order for the market to get to a new high, $NYHL must go to an extreme high. In the plot below, $NYHL is at about the level of early January '03. However, the NYSE index is only at about 4900 versus 5200 in early January.
stockcharts.com[e,a]daclyyay[d20010907,20030407][pb50!b200][vc60][iUb14!La12,26,9][J9826753,Y]&pref=G
Of course, that is not to say the market can't go higher. It just means that if it goes higher, that particular indicator will have to go to a further extreme. And the the more extreme the indicators get, the more likely the market will correct.
Hope that helps a bit.
Tom |
