High-Low Range index charts

Discussion in 'Technical Analysis' started by viktor_k67, Mar 3, 2015.

  1. Over the past several days, there was some increase in volatility among the most bullish stocks. See below the High-low range charts for the S&P 500 and Russell 2000.

    As you may see the number of bearish stocks which are traded in 5% range from their 2-week lows remained stable. At the same time, strongly bullish stocks (stocks traded within 5% range from their 52-week highs) went wild.

    We do not see increase in volatility on the indexes itself at this point of time, so, it could be nothing. On the other hand it could be a sign of nervousness of those investors who trade these strongly bullish stocks.

    S&P 500 High-Low Range chart
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    Russell 2000 High-Low Range chart
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    Charts courtesy of http://www.marketvolume.com/
     
  2. Maksim

    Maksim

    the most profitable system . 92-96 % upload_2015-3-4_22-32-27.png
     
  3. Brief explanation to the High-low range charts below to understand it better:

    At the top of the charts below you will see the index candle and below high-low range graph which shows where the stocks listed in index are traded. Such, on 4/2/2015, 11 stocks in the 0% range would tell that 11 stocks from the S&P 500 index are traded in 0-5% range from their 52-week (1-year) low. Respectfully, on the same date the number 42 in the 95% range would tell us that 42 stocks from the S&P 500 index are traded in 0-5% range (100-95) from their 52-week highs. This charts are basically deeper look into the Index's 52-week New High/Lows charts as it tells us where the stocks are traded in relation to their 52-week high and 52-week lows.

    Note:

    On the NYSE chart below (see chart #2) you may see the strong increase in the number of stocks traded in the 5% range from their 52-week highs. The NYSE Composite was still at low level on 3/27/2015, however the number of strongly bullish stocks almost doubled on that day - from 106 on 3/26/2015 to 171 on 4/27/2015. This divergence was a sign of possible bounce.

    Brief Analysis

    Third time over the past month the major indexes (DJI, S&P 500 and Nasdaq 100) have dropped to the support set on March 11, 2015. So far everything looks positive after 2-day bounce on April 1-2, 2015. the S&P 500 High-Low Range charts (see chart #1 below) are also looks bullish but not strongly, more like weak bullish. yet, we have to understand that the indexes are still close to their 1-month support level. Most of the S&P 500 listed stocks are traded in the 25% range from their 52-week highs, yet the number of bearish stocks (stocks traded closer to their 52-week lows is still big). 33% of the S&P 500 listed stocks are traded closer to their 52 week lows. Situation is a little bit worthier on the NYSE composite index where 44% of the stocks are traded closer to their 52 week lows (see chart #2 below). As we may see, while the sentiment among the strongest 500 stocks (S&P 500) on the market is more or less bullish, the entire market (NYSE Composite) is not as optimistic and still is on the edge.

    Chart #1: SPX high-Low range charts

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    Chart #2: NYA high-Low range charts

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    Charts courtesy of http://www.marketvolume.com/
     
    Last edited: Apr 4, 2015