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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Big Bucks who wrote (14341)	4/14/2005 5:51:57 PM
From: Proud_Infidel	Respond to of 25522

High/low indicator is bearish sign for U.S. stocks Thu Apr 14, 2005 05:40 PM ET NEW YORK, April 14 (Reuters) - As U.S. stocks slid to 2005 lows on Thursday, one indicator of investor sentiment is turning increasingly negative -- the number of companies hitting fresh 52-week lows. By the close of trading on Thursday, 125 companies on the New York Stock Exchange hit 52 week lows, against just 21 hitting year highs. Among Nasdaq stocks, 163 made new lows on Thursday against just 28 making new highs. All three major indexes -- the Dow Jones industrial average , the Standard & Poor's 500 Index and the Nasdaq Composite Index -- closed at fresh lows for the year. "There's an erosion of the market right now," said Christopher Johnson, Director of Quantitative Analysis at Schaeffer's Investment Research, who said the high/low indicator pointed to "more pain to be endured at least in the short term". "This is an indicator that's fairly widely used," Johnson added. According to his data, only about 43 percent of companies are currently making new 52-week highs versus 52-week lows, compared to January when around 90 percent were making new highs. The average since January 2004 is about 73 percent making new highs, he added. That data is "saying that the trend is to the downside -- that technical strength or foundation of the market is being eroded," said Johnson.