NYHL NYSE New Highs-New Lows and NYSE Composite Index Daily Charts

When markets print at extremes, they typically revert to the mean. The NYHL is the new highs minus the new lows for the NYSE Composite Index. Thus, when the Fed wine is flowing like water, and stocks are pumped higher, the new highs far outnumber the new lows providing a positive number above the blue line. When the stock market is off-the-charts bullish and euphoric and traders are buying all the dips with reckless abandon believing that equities will go up forever, the new highs are extreme which provides the peak numbers shown by the red circles that turn out to be tops.

When the blood is flowing on Wall Street and traders are screaming bloody murder all running for the exits at the same time, and the baby is thrown out with the bathwater, the new lows increase substantively. The new lows will outnumber the new highs producing a negative number and candlesticks below the blue line. The green circles are stock market bottoms. What do you think will happen? 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.

Note Added Wednesday Morning, 10/7/20: SPX drops 48 points, -1.4%, to 3361 slipping below the 50-day MA at 3368 so keep an eye on that. NYHL spikes to 178 intraday and ends at 130 remaining elevated consistent with where a near-term top occurs in the stock market. President Trump is back at the Whitehouse returning from Walter Reed Medical Center and this time, humorously, it's no more Mr Nice Guy.

Note Added Thursday Morning, 10/8/20: On hump day, the SPX jumps 58 points, +1.7%, to 3419. Dow is up 531 points, +1.9%, to 28303. COMPQ +1.9%. NDX +1.9%. Bulls rally stocks on stimulus hopes. NYHL spikes to 164 intraday remaining elevated consistent with where a stock market top would be expected.

Note Added Thursday Morning, 10/8/20, at 10:26 AM EST: The SPX gains +0.4% to 3435. NYHL spikes to 155 intraday, as this message is typed, remaining elevated consistent with where a stock market top would be expected. There should be some fun ahead.