Chart of the Week: % of NYSE Stocks at 30 Day Highs

Looking at the issues on the NYSE (stock only) at 30 day highs, we find similar readings to the 2002 and 2003 lows. This confirms our previous oversold/bullish readings of last week. As the markets build on their bounce off the 200-day moving averages, we expect more movement back up before down.

% of NYSE Stocks at 30 Day Highs
Source: Technimentals

Technimental’s Kevin Lane notes: “We would expect the market to try and retest recent highs given these oversold readings. We will see if internals re-assert themselves or stay weakened, relative to their recent high readings. Lower readings on a test would set up for a classic breadth divergence and lead to a bigger correction than what we recently witnessed.” We agree.

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Quote of the Day:
“Little minds are tamed and subdued by misfortune; great minds rise above them.”
Washington Irving

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