By Scott Pluschau
www.scottpluschau.blogspot.com
Year to date, there is further deterioration in the 52 week new highs minus the 52 week new lows in the NYSE as the Dow Jones Industrial Average continues to push to new highs each day. This indicator is not some bogus "oscillator".
I believe this is an important indicator to keep an eye on as the S&P 500 approaches its all time highs. Bearish divergence in this indicator has historic ramifications. Bulls want to see confirmation of the highs.
(Click on chart to expand)
NYSE
What will be very interesting is if this indicator or the one in the Nasdaq Compositie Index goes negative with any weakness. The Nasdaq NH-NL's is also lagging year to date.
There is continued price/volume divergence in the Equity futures. Meaning volume has been expanding on bearish price action, and diminishing on bullish price action. Historically that is not a sign of a healthy bull market.
I continue to sit on the sidelines preserving capital in regards to Equities, awaiting the opportunity to trade on the short side, as things may line up just right in the near future, and that is when I want to get involved with any favorable trade locations. A favorable trade location is when I am comfortable taking risk for profit. When I believe there is an "Edge" in regards to the probabilities, reward and risk, taken consistently over time.
Twitter/ScottPluschau
Email: ScottPluschau@gmail.com
Hard Asset Model Portfolio:http://scottpluschau.blogspot.com/p/hard-asset-model-portfolio.html
Swing/Position Model Portfolio: http://scottpluschau.blogspot.com/p/subscription.html
I believe this is an important indicator to keep an eye on as the S&P 500 approaches its all time highs. Bearish divergence in this indicator has historic ramifications. Bulls want to see confirmation of the highs.
(Click on chart to expand)
NYSE
What will be very interesting is if this indicator or the one in the Nasdaq Compositie Index goes negative with any weakness. The Nasdaq NH-NL's is also lagging year to date.
There is continued price/volume divergence in the Equity futures. Meaning volume has been expanding on bearish price action, and diminishing on bullish price action. Historically that is not a sign of a healthy bull market.
I continue to sit on the sidelines preserving capital in regards to Equities, awaiting the opportunity to trade on the short side, as things may line up just right in the near future, and that is when I want to get involved with any favorable trade locations. A favorable trade location is when I am comfortable taking risk for profit. When I believe there is an "Edge" in regards to the probabilities, reward and risk, taken consistently over time.
Twitter/ScottPluschau
Email: ScottPluschau@gmail.com
Hard Asset Model Portfolio:http://scottpluschau.blogspot.com/p/hard-asset-model-portfolio.html
Swing/Position Model Portfolio: http://scottpluschau.blogspot.com/p/subscription.html
