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