NYHL New Highs-New Lows Daily Chart Diverging from the Broad Markets

The NYHL shows the recent market bottoms as green circles and recent market tops as red circles. Note how market bottoms occur when the new lows far outweigh the new highs, and, visa versa, the market tops occur when the new highs far exceed the new lows, like now. The broad markets have been in this bullish trend since mid-December.

The recent action shows a descending triangle which is bearish. But instead, focus on the downward-sloping red trend line. The NYHL is dropping, leaking away as the broad market makes new highs. The three peaks on that trend line correspond to the market tops over the last three weeks. This divergence is bearish showing exhaustion in the upward move; the markets are moving higher but the number of new highs continues to trail lower. Projection is that the broad markets are topping and a pull back should occur at any time. 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.