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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (16996)	6/12/1999 12:53:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 99985

Re: New highs and lows from Barron's this week. Comments? One favored technical indicator may be losing some of its usefulness. The daily ratio of stocks setting new 52-week highs to new 52-week lows on the New York Stock Exchange is a widely followed measure of market breadth, along with the ratio of advancing issues to declining stocks. But lately, the new lows list has been littered with closed-end municipal-bond funds and various forms of preferred stock. The declines in these issues are a direct result of a weak debt market. On Thursday, for instance, over 80% of the 113 new Big Board lows were bond-like issues. Perhaps technicians should throw out these bonds in drag when analyzing the ratio of new highs to new lows.