Today's chart show's the raw daily data on the NYSE's daily New Highs. On
this chart, a minimum of 100 is a very important level in a rally. 150
is what I want to see. (50 is neutral.)
After looking at the "A" shape resistance lines, two things can be observed
on today's chart:
1. That the New Highs were at a healthy 227 yesterday. Above 150, the positive
traction is high and a market positive for any rally.
2. The second observation, is that New Highs had a peak level on November
5th. And since then, the trend has been moving down. Unless this trend changes,
it will eventually bring the level of New Highs down below 100, and possibly
below 50.
Why are those numbers important? Because we want to see New Highs above 100
for a healthy rally, and below 50 is a problem level typically associated with
pullbacks or market corrections.
So, the declining trend has been a slow descent, but its message is that it
wouldn't hurt to put the NYSE New Highs on your radar screen during the coming
weeks.
(FYI: Today's chart is posted and updated every day on our Standard subscriber
site and can be found on Section 4, Chart number 4.)
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
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