The S&P 500 price decline will be resumed and it will fall to a re-test of the original daily close price low which appears to be its March 23 close at 2,237. Copyright © 1996-2020 McClellan Financial Publications. New High/New Low ratio is a ratio based on new 52-week high issues and new 52-week low issues. information on interpreting the NH/NL Ratio. This past Monday’s new record negative divergence at -60.6% is telling us the same thing it told us in October 2014.
The chart above shows that the 20-day/100-day divergence stopped rising on December 3, 2018.
T2122 4week New High/New Low Ratio - New highs for the last 4 weeks divided by new highs + new lows. The peak in New Highs usually appears before the final price high. So trying to adapt rules for bottoms to the hunt for tops is not likely to work due to the different personality of each type of event. This breadth indicator shows when new highs outnumber new lows and when new highs are expanding. This is a text widget, which allows you to add text or HTML to your sidebar. What this 2014 episode has in common with the “Coronavirus Crash” other than the panic fear associated with potential deadly virus epidemics is the extreme speed with which the 20-day moving average of NYSE daily new high/new low ratios collapsed. The 50-day through 200-day moving averages of NYSE daily new high/new low ratios recorded extremely large weekly declines this past week and can be expected to continue to do so through at least Thursday, April 9 (The NYSE will be closed on Friday, April 10 for the Good Friday Holiday).”Replacement” columns for these four moving averages in our regular table this week show that unless and until the NYSE can post daily NYSE new high/new low ratios that are consistently in the 59.0% to 81.0% range all four of these moving averages will continue to fall. The acceleration at the bottoms (the bounces) are much more acute and noticeable than the slow rollovers at the tops. This indicator is best for identifying a bottom if you use this with other breadth indicators. Our regular table showing closing levels today and on March 20 for the six 10-day through 200-day moving averages of NYSE daily new high/new low ratios, their direction of movement and net change for the week ending today, and upcoming average daily ratios due to drop and be “replaced’ in their respective moving average calculations for the next two weeks through Friday, April 10 is above.
I wanted to take the time to update the latest New High – New Low (NH-NL) ratio chart which I follow from week to week on the MSW Index. This difference in behavior results in the maximum number of New Lows being seen at the time of important price bottoms.