Surprised at the 52 Week New High indicators
The real reason I go through the hassle of publishing my charts is to force me to examine them and “see” what they have to say. On Friday at the close I thought the 52 week new highs had pretty much established their bearishness along with all the other indicators. On re-examination today for this post I noticed that we missed by only a couple of New Highs from going neutral and from just 4 new highs from turning the sell signal into a buy signal. That is interesting, especially on a weak half-day. Wednesday closed the New Highs average at 107 and Friday was 108.
Last Wednesday the NAZ triggered a buy signal of the new highs, on Friday’s close the signal turned from buy to neutral. I fully expected a full out sell signal based on the weakness. Again a little amazed that we are not on a flat out sell on the NAZ.
Both the NYSE’s and NAZ’s signal are impressive in that we only put in half a day of trading. We wait anxiously on Monday now to see how these signals will setup.
Monday’s target bars are quite low with the NYSE having to put in only 50 New Highs to start to turn the indicator. Any green on Monday and we could easily do that.
New 52 Week High Bonus Chart:
Today I am going to throw in a bonus chart. I have read some blogs and seen some emails that have mentioned the fact that we just made new market highs on lower 52 week new high numbers. That was represented as being bearish. This is not necessarily true. We did the same thing toward the end of August only to get one big thrust to propel us up to even higher highs along with higher 52 week new highs.
I am not saying that is what is happening here but to realize that the “missing” new highs could also be thought of as stored potential energy ready to rejoin the current new highs to propel both indices to a new yearly high. The charts do look ragged in here and we need to watch the our 5 DMA to see what happens over the next couple of days.
-RLT
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