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).
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4 comments:

writersblock said...

Any thoughts on that huge volume surge on the close? On one charting service I use, it shows green, while on another, it shows red.

JimRI said...

Are those numbers of 20 highs and lows from an efs in esignal or something you added graphically.

I use esignal and have not found and efs to calculate those.

jgr

Brett Steenbarger, Ph.D. said...

Hi WritersBlock,

Yes, a surge of buying, then selling. Looks like more of that algorithmic trade running stops to me.

Brett

Brett Steenbarger, Ph.D. said...

Hi Jim,

My bad for not explaining. I simply manually added the high/low data to the chart. The data can be obtained through Barchart.com; thanks--

Brett