Monday, August 31, 2009
Fewer Stocks Showing 20-Day Strength
Above we see the S&P 500 e-mini futures (ES) on an hourly chart, illustrating the recent choppy, sideways action. If you click on the chart and look at the blue numbers above the volume bars, you'll see how the 20-day new highs (top number) and lows (bottom number) have shifted downward over this period. Indeed, we saw more new 20-day lows than highs today, a sign of deterioration in the broad stock market. This fits with my earlier view of the indicator, suggesting a narrowing base to the bull market.
Note: This indicator tracks all common stocks across the NYSE, NASDAQ, and ASE and is updated each morning before the market open via Twitter; follow here).