Monday, June 12, 2006
Market Update
Just a few notes from Monday's trading that might be of relevance. We continue to see broad market weakness. For instance, there were 5 issues in the S&P 600 small caps making new 52-week highs on Monday and 33 making new lows. That is the highest number of new lows since the recent weakness began. In the broad market, 315 issues made 20-day new highs; 1732 made new lows, indicating that last week's late bounce has not kept many issues off their lows. I notice that about 23% of S&P 500 stocks are above their 50-day moving averages. Typically, in the past several years, we've had to get below 20% to reach an intermediate-term market bottom. In all, plenty of reason to stay defensive.
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4 comments:
I've been watching the Chaikin's oscillator and it seems to be indicating that the down trend is being supported by less and less volume. I watch it in relation to its excusion from its 5 day SMA. Extremes (20+ points) seem to indicate a change in direction and it has been going extreme for a couple of days now.
Thanks for the observation. The question is whether, like most oscillators, it can *stay* extreme over extended periods of time during strongly trending markets. This is why I focus so strongly on the number of issues making new highs/lows. If those figures are expanding, I have much greater doubt that the trend is ending.
Brett
Where are the numbers of stocks reaching new highs and new lows published?
Hi,
You can find high/low stats at the Barchart.com and DecisionPoint.com sites, among others.
Brett
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