NYHL New Highs-New Lows Daily Chart

A strong extended rally is signified by more and more new highs as the indexes print new highs. Whoospies daisies. The SPX and other broad indexes explode higher with a Fed-induced orgy printing new all-time highs again, however, the red lines continue to show the lack of participation with the new highs. In fact, less companies make new highs with each equity poke higher. Thus, the goosing in the market currently is focused on the high-flying stocks, a narrower and narrower universe, and not broad market participation.

In the first half of 2013, the new highs remain broad-based and robust. The May-June selloff occurs but the elevated robustness of the January-May levels hints that equities may want to come up for another look at the price highs, which occurs, and is still occurring. The difference is that July into October the rally was supported by more and more new highs, however, from October to now, as the broad indexes print higher highs, the new lows continue to drop with only the momo stocks and other high-flyers enjoying new high status. Based on price levels only, the pink box fractal may play out due to the decreased breadth underlying the market. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.