This is our Daily NYSE new highs as reported by TradeStation. I added the MagicNumber indicator to the chart. The numbers to the right represent the needed value of closing-new-highs to tick the moving average up one value or down one value. For today our moving average rounds to 129 (Yellow line). In order to tick the moving average up to 130 we would have to close with 86 (Dark Blue) or over new highs (this would be bullish), to tick the indicator down and show a loss of upward momentum we would have to close below 76 (Red Line) new highs (bearish).
Yesterday morning I decided to look at the other New High’s data. I have All US stocks, NYSE, Dow, S&P, NDX, N100 as well as the Russell 2000 available to me. The problem with the smaller indices is that there just isn’t enough stocks listed to gain any useful data. The R2000 however does have 2000ish stocks and unlike the NYSE does not have all those preferred and bonds and weird non traded items that need to be filtered out.
Looking at the R2K we can see we peaked New Highs on 7/28 and lost a little momentum Yesterday was a big day for the Russell and the momentum loss was curbed. Today for the R2K it will be interesting to see if the New High indicator can tick up one..(it needs to break 52 in order to do that) indicating returning momentum to the small caps.
New highs are an interesting sentiment indicator as new highs are either yesterdays (or a few days ago’s) new highs re-hitting new highs (repeaters we’ll call them) or new symbols joining the pack of leaders (noobies we will call them). There may be some information to gain from separating the noobies from the repeaters but that will have to be another study.
Our Zweig continues to sit in overbought area. Come on Bulls, give the poor indicator a break here, let it come down so I can join the stampede! That 64.21 value is high, but it has been higher on a few occasions so there is still some bull room.
