The good news is:
All of the major indices except the Russell 2000 (R2K) closed at all time highs last Wednesday. New lows declined on Thursday and Friday which were down days for most of the major indices.
The Negatives
Except for Thursday and Friday, new lows increased every day last week.
The blue chips outperformed the secondaries.
Another Hindenburg omen was triggered last Wednesday while the blue-chip indices were hitting their all-time highs.
The first chart covers the past 6 months showing the S&P 500 (SPX) in red and a 10% trend (19 day EMA) of NYSE new lows (NY NL) in blue. NY NL has been plotted on an inverted Y axis so increasing new lows move the indicator downward (up is good). Dashed vertical lines have been drawn on the 1st trading day of each month.
NY NL is continuing to move downward as the index is making new highs.
The next chart is similar to the one above except it shows the Nasdaq composite (OTC) in blue and OTC NL, in dark red, has been calculated with Nasdaq data.
Same story on the Nasdaq; new lows increasing while the index is making new all time highs.
The next chart covers the past 6 months showing the SPX in red and a 10% trend (19 day EMA) of NYSE new highs (NY NH) in green.
NY NH again failed to confirm the new high in the SPX.
The next chart is similar to the one above except it shows the OTC in blue and OTC NH, in green, has been calculated using NASDAQ data.
OTC NH continued its fall easily failing to confirm the index high.
Summation Indices (SI) are running totals of oscillator values. The charts below show SI’s calculated from advance-decline (AD), new high – new low (HL) and upside-downside volume (UD) oscillators.
The signals from SI’s are often ambiguous; however, when they are all heading in the same direction, they deserve attention.
The chart below covers the past 6 months showing the SPX in red and SI’s calculated with NYSE data.
