NYSE New Highs
The NYSE Composite is a useful tool for measuring the ebb and flow of the equity market, especially when its used to interpret price action.
Comparing the number of new highs versus new lows on a daily basis complements price action by visualizing investor appetite. A sustained number of new highs creates a green histogram formation above the zero line. Sustained lows produce a bearish pattern, with a sell signal when histogram drops below the zero line.
Currently, new highs outnumber new lows. The histogram is above zero line and the bullish trend is persistent.
NYSE Advancing Issues
Advancing issues in the lower panel continue to delineate higher highs.
Price action is bullish. Breadth confirms. Until something changes, we continue to hold a bullish bias. That said, rotation out of technology stocks will need to be monitored. Banks and energy stocks appear to be the beneficiary of capital flows over the last couple of days.
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