NYSE New Highs/New Lows Ratio Falling Off a Cliff
Monday, November 17, 2008 16:34Another brutal day on wall street as the Dow Jones Industrial Average gave up another 223 points to close the day at 8273. The following chart paints a grim picture as to the internal health of the market. The NYSE New Highs-New Lows ratio shows the number of stocks in the NYSE making new 52 week highs vs. the number making new 52 week lows. When the line is rising, the amount of stocks making new highs is greater than the amount making new lows and so the opposite is true when the line is falling, as it is. The line peaked in June 2007 and has been dropping since. This gave an early warning of trouble coming in the market.
The usual suspects dragged the market lower today. The financial index (NYSE: XLF) made a fresh closing low.
The following chart illustrates just how weak our financial system truly is. Below is the financial index, as measured by XLF, relative to the market, as measure by the S&P 500 index. Notice the fresh new low made in the past week.
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April 10th, 2009 at 5:14 am
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