Tuesday, August 19, 2008

Market Strength and Weakness: Tracking New Highs and Lows

Each morning via the Twitter app, I update readers with the number of stocks making fresh 20-day highs and lows across the NYSE, NASDAQ, and ASE. It's a great way of tracking emerging strength and weakness across the broad range of issues.

Note how, after rallying and expanding the new highs minus new lows (chart above), we are now seeing a weak Cumulative NYSE TICK and now new 20-day lows significantly exceed new highs. Weakness across the financial stocks, noted in the last sector update, has been spreading to the broad market, a resumption of a relationship seen during the last bout of market weakness.