Credit to the Decision Point site, which tracks the common stocks only for the NYSE Composite Index. As the NYSE Composite has moved to 52-week lows (top chart), we see that the number of NYSE common issues registering fresh 52-week lows (middle pane, top chart) has shriveled to only 124 on Friday, compared with around 450 at the mid-July lows. At the same time, the advance-decline line specific to NYSE common stocks has, so far, failed to confirm the new lows in the index (bottom chart, bottom pane). If these divergences continue, I will be looking to be an aggressive buyer of stocks--and probably a seller of the long end of the Treasury yield curve. I'll have a fresh indicator update posted Monday AM.
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