The NYHL, NYSE New Highs minus New Lows, prints the highest number since the start of the February-March crash (red circles). When there are excessive highs during euphoric bullishness, the new lows diminish to nothing so the NYHL climbs higher. This hints, however, that the stock market is out over its skis.
Conversely, when stocks are sold off the number of new lows skyrocket and new highs diminish dragging NYHL lower. This excessive negativity leads to a rally and the March bottom is the green circle.
You can see over the last month several pokes higher with the NYHL. This euphoric sentiment matches the ongoing uber low CPC and CPCE put/call ratios that signal a significant stock market top at hand. 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 Friday Morning, 9/4/20, at 4:48 AM EST: Yesterday, the SPX drops 126 points, -3.5%, to 3455. The VIX jumps to 35.94 and settles at 33.60. VIX is currently trading at 32.41. Bears will not be able to stop the selling unless the VIX drops below 28.666 (as per the Keybot the Quant algorithm).
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