What Level of "New Highs" is Historically Related to "Corrections" and What is the Current Level?
Interesting question isn't it? If you watch the daily count of New York Stock Exchange "New Highs" some very interesting historical information appears.
For example ... below is a two and a half year chart of the New Highs compared to how the S&P 500 trended during that time.
1. So, what level of New Highs is associated with corrections? The answer is 50 or below.
2.What level is favorable for an up move? The answer is above 50 and below 100.
3. What level is associated with strong rally moves? The answer is 100 and above.
So, the only question we didn't ask yet is: What level was the New Highs at yesterday?
And, the answer is: It closed at 58 yesterday. (Today's chart is posted every day on our paid subscriber site.)