logo
  Join        Login             Stock Quote

Relative Highs and Lows in the SPX

 May 05, 2008 01:47 PM


There are a wide variety of ways to measure market breadth, a number of which I have blogged about in the past in some detail.I have not, however, spent much time discussing new highs versus new lows in the S&P 500 index – and given that this blog spends an inordinate amount of time talking about the VIX, it makes sense that much of the analysis here eventually gets tied back in to the SPX.

Of course there is a chart for this – and in this case I have elected to go back through six months of bearish market movement to make my points.The relative high and low chart is best used for two purposes: to identify oversold levels; and to help flag a change in trend.In the chart below, the 20 day EMA dips below the 20 level in both January and February of 2008 for the first time since October 2002, signaling an oversold condition.The change in trend is harder to spot on this chart, but historically a bullish leg is usually underway once the high low index is back over the 65-70 level.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.