NYHL NYSE New Highs-New Lows Weekly Chart

The NYHL is at elevated levels these days on the vaccine hype, central banker money-printing and fiscal (government) stimulus. The party is in full swing, and as always, Rock 'N' Roll is King. Traders, drunk as skunks off Fed wine, are buying any stock with a heartbeat. The new highs climb sharply higher greatly outpacing new lows. Alas, after the party, the hangover arrives.

The NYHL is now at the same levels as early in the year when the cliff-dive occurred. The NYA (NYSE Composite) prints a new all-time record high like other indexes but interestingly, the NYHL is not nearly as exuberant as late last year into January and February. Considering the new euphoric bullish highs in stocks, the NYHL should be at 3 hundo; it's not. That's a divergence. The NYA prints new price highs but the NYHL is not confirming the higher prices year-on-year.

So now it is a waiting game to see if the February fractal repeats (purple boxes) which represents the stock market in collapse. The blue bars show the spike in the NYHL recently. All prior times that the NYHL spikes higher like that, above a hundo, a pullback followed (orange boxes and purple box on the left). Perhaps it is a question of whether the pull back is the orange box variety or the purple box. What do you think? Will the fractal repeat? Oh, Keystone forgot. You are quintuple long the long tech 5X QQQQQ ETF, on margin, and are not even considering any pullback in stocks because the guy on tv said so. There is pain ahead; it is only a matter of if it is cuts and scrapes initially then followed by the turn for the worse like December-February, or, if you will get your head chopped off quickly like February. Plan accordingly. 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.