LG,
We may be getting the first hint that the market internals are deteriorating. I realise that some only look at absolute numbers, and the old saying that if new lows stay below 40 or what ever that
number is. I feel that is an approached which which does not compensate for such a dynamic market which we are in.
I prefer to examine the rate of change(delta factor), than deal with
aboslute numbers. For example, yesterday the NEW HIGHS on the NYSE
was at 169 and the NEW LOWS was only 33, thats a major impovement and if that continue over a period of time that would be a strong positive for the market. Of course we need confirmation.
Right now the NEW HIGHs is only 25, and the NEW LOWS is at 26. If one just looks at absolute numbers the NEW LOWs are still below 40 or whatever that number is which is supposed to be a positive and that all that counts. So the shift from 169 NEW HIGHS yesterday to on 25,
so far today, is disgarded? I believe that this is an early hint while those who look at absolute numbers would discount it?
Of course it needs confirmation just as much as the absolute number approach needs confirmation.
As for the NAS which is up 35 right now, the NEW HIGHs is only 19 and the NEW LOWs is at 65. Keep in mind the NEW HIGHs is about 3 times higher than the NEW HIGHs on a positive day. Yes Yes, I know we still
need confirmation, but if that is not at least a hint that this
indicator is deteriorating, please tell me what is.
I fully realise that it is not a great approach to view the
NEW HIGH/LOW indicator on a one day basis, but I recall how the bullish analysts made strong comments on how the NEW HIGHs were at 166 - dont they need confirmation also, or does that only apply for
the bearish view?
seeya |
