NYHL New Highs-New Lows Daily Chart

The NYHL is now at levels not seen since the top in the markets just before the August waterfall crash. The red circle shows that the extreme increase in new highs led to a pull back in equities. The same situation is occurring now with a lofty NYHL, more than likely fueled by the dividend bubble now occurring as discussed last night. Companies such as MCD have continued to punch out new highs but as shown in yesterday's cahrts and discussion, negtive divergence exists across the board with nearly all of these dividend plays so the traders seeking safety there are in a hiding place that is already over crowded. Dividend stocks will get slapped just as hard as any other stock in a market down turn.

Note the green circle which showed excessive new lows and marked the bottom for equities and the beginning of the big-time October rally. Seeing this chart, how do you want to prepare? The peak in July was a market top that resulted in a sharp pull back, then markets recovered for a couple weeks in July, the NYHL printed that second peak at 195-ish, this was the peak from which the waterfall crash occurred, so perhaps a similar fractal will develop now. This chart shows that a market sell off is coming. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.