If we take a look inside of the S&P 500 index to see where the S&P 500 stock are traded over the past 4 trading sessions (see High-Low Range Charts below) we will see that the number of stocks traded close to their 52-week is decreasing. We have some increase in weak stocks from 23 to 31 (stocks traded in 5% range from their 52-week lows). Still the overall number of bullish stock is strong. Chart 1: S&P 500 High-Low Range Chart NYSE Composite index is weaker than the S&P 500. By compare NYSE High-Low Range chart on 11/26/2014 and on 12/1/2014, we will see increase in the number of bearish stocks (traded closer to their 52-week Lows). However, the number of bullish stocks (stocks traded closer to their 52-week highs) is big. I would start to worry about the S&P 500 and NYSE when I see increase in the number of middle stocks - stocks that are traded in the 30-70% range (in the middle of 52-week highs and 52-week lows). Chart 2: NYSE High-Low Range Chart The Russell 2000 index is the worthies sector on the market at this moment. The Russell 2000 High-Low range charts show steady move of the stocks away from their 52-week highs to their 52-week lows. If this continues, we may see similar picture in other indexes. Then we may say we are going into another correction down. Chart 3: Russell 2000 High-Low Range Chart charts courtesy of marketvolume.com
Those Russ stock have been real weak, for a long time especially compared to SPY, QQQ related. I studied them in a newer edition of Stock Traders Almanac,Also .Like the One elitetrader; noted 2,000 stocks too hard for MM to hedge,LOL Thanks