Below you may see the High-Low range NYSE and S&P 500 index charts. Chart #1: High-Low Range 50% NYSE chart from February until November 2015: red line is the # of Bearish stocks which are traded closer to their 52 week lows and green line is the # of bullish stocks which are traded closer to their 52-week highs. Chart #2: High-Low Range 50% S&P 500 chart for the period from February until November of 2015. charts from http://www.marketvolume.com/quotes/highlowrangechart.asp The number of the bearish stocks comprising the NYSE Composite index was bigger than the number of bullish stocks in May of 2015 (see the chart #1). I have mentioned in several trading forums - this is not a good sign for the market (http://www.city-data.com/forum/investing/2415542-time-start-dumping.html) - nobody cared then and in a week after nobody remembered. By comparing the NYSE and the S&P 500 charts, we may say that the bigger part of the NYSE stocks became bearish in May-June of 2015. The majority of the S&P 500 stocks was still Bullish at that time. This mean the smaller companies went into the decline in May 2015 while bigger companies (like AAPL) were still Bullish. However, the market cannot stay bullish just because big companies are. In August of 2015, the market giants started to decline as well and the market suddenly crashed. Today, the number of bearish stocks topped the number of bullish stocks on the S&P 500 again (see chart #2 above). While we see the majority of stocks declining, we cannot talk about the Bull market. The situation could be different tomorrow and we will see it tomorrow. However, at this point of time, I would say the odds are higher for a correction than for the Bull market.
If you do not do market Breadth analysis then do nothing, This is just my point that this is not the Bull market against those yahoo contributors who is stating that we are in the Bull market...
These are nice stats, but I see no value from a predictability standpoint. I'd like to see a chart of the performance of just the "high flyers" (GoPro, FitBit, Apple, Valeant, Amazon, etc.) as a guage of market sentiment.
Just "high flyers" will not the hold the market forever at the top especially when the majority of stocks are in deep correction. Comparison of the NYSE Breadth chart to the S&P 500 Breadth chart show it above. Majority of stocks on the NYSE went into deep correction far before the strong S&P 500 companies ("high flyers") did. The point is that we cannot talk about the Bull market while bigger part of stocks is in a deep correction (traded closer to their 52-week lows). Still if you want to see the "high flyers", you can check the DJI Breadth Chart below which show that as of today 12 of the 30 DJI stocks are traded closer their 52-week lows (stocks are already in correction. Chart #1: High-Low Range 50% DJI chart from February until November 2015: red line is the # of Bearish stocks which are traded closer to their 52 week lows and green line is the # of bullish stocks which are traded closer to their 52-week highs. Situation on the Nasdaq 100 stocks (tech "high flyers") is about the same as on the S&P 500. yesterday, the number of bearish stocks overcame the number of the bullish stocks. As of today, 58 of 100 of the hi-tech "high flyers" are traded closer to their 52-week lows. Chart #2: High-Low Range 50% DJI chart from February until November 2015
What would really be cool is to graph the difference between one's portfolio and the indices you have already displayed. A Question: Is the high-low range calculation just averaging the high and the low ?
The calculations are simple, you just check where the stocks listed in the index are traded. If a stock is traded closer to its 52-week low than this stock in a deep correction - this is bearish stock. If a stock is traded closer to its 52-week high then this is a bullish stock. Then you calculate total number of bullish and bearish stocks and plot it on a charts. On charts you may see where the majority of stocks listed in the index are traded and what is the tendency. You may see whether the number of bullish/bearish stocks is increasing or decreasing. You may see the situation among strong companies by looking on the S&P 500, or among the small companies by looking at the Russell 200, or check where the majority of the NYSE stocks are heading. You may read more about it at http://www.marketvolume.com/advance_decline/highlowrangechartsimple.asp
Got it...I was confused because of the top chart .... which is only a plot of the index. I would like to also see the average % within the range for the stocks in the index.... so if there are 3 stocks and one is 10%, the other 30% and the last one 50%, the average would be 30%. Better yet, do it on a price-weighted basis.....
If there 3 stocks and 1 stock is traded 10% from its 52 week low and second stock is traded 20% from its 52-week lows then we have 2 bearish stocks. If the third stock traded exactly 50% from its 52 week low then it is a neutral stock as it is exactly in the middle between its 52 week high and its 52 week low. Or maybe I misunderstood your question.
Can you post these charts again but for just intraday (less than 15mins) ? I suspect these charts (intraday) would be very useful for futures day traders of the Emini futures and Eurex futures traders but I won't know until I see intraday charts of these high - low range charts of the index. Simply, I immediately saw their usefulness for swing trading or position trading Emini futures and Eurex futures. Now its prompt my curiosity about day trading on intraday charts via high - low range charts.