Bullish Implications from New Lows Data

Update: Final # new 52wk lows: 40 on NYSE, 74 on NASDAQ. Signals below triggered.

The S&P500 traded nearly a full 1% below Tuesday’s lows, but 52-week lows on the NYSE and NASDAQ are set to come in well below Tuesday’s levels, suggesting a lot of the stocks hitting new lows yesterday did not follow suit today. That’s a bullish divergence that points to higher prices short-term.

This signal came close to being triggered last Friday but new lows on the NASDAQ expanded late in the session to invalidate the signal. It doesn’t look like that will happen today as new lows on the NYSE (45) and NASDAQ (72) are running well below Tuesday’s levels of 77 for the NYSE and 134 for  NASDAQ.

Given that the SPX and NDX both hit 5-day and 20-day lows today, this will trigger two separate short-term bullish signals, one with a 1-2 trading day horizon and one with a 2-4 day horizon. Both have solid track records…

NDX & SPX Hit One-Month Lows, New 52-week Lows Decline (on both NYSE & NASDAQ)
08/25/10… Higher SPX close two sessions later
06/30/10… Higher SPX close four sessions later
01/28/10… Higher SPX close two sessions later
07/07/09… Higher SPX close two sessions later
02/23/09… Higher SPX close two sessions later
11/21/08… Higher SPX close two sessions later
10/09/08… Higher SPX close two sessions later
10/07/08… Higher SPX close four sessions later
09/17/08… Higher SPX close two sessions later
06/12/08… Higher SPX close two sessions later
01/23/08… Higher SPX close three sessions later
01/07/08… Higher SPX close three sessions later
11/12/07… Higher SPX close two sessions later
11/09/07… Higher SPX close two sessions later
07/31/07… Higher SPX close two sessions later
05/18/06… Higher SPX close two sessions later
01/03/06… Higher SPX close two sessions later
08/24/05… Higher SPX close three sessions later
04/18/05… Higher SPX close three sessions later
08/13/04… Higher SPX close two sessions later
07/23/04… Higher SPX close two sessions later
09/29/03… Higher SPX close two sessions later
08/05/03… Higher SPX close two sessions later
12/31/02… Higher SPX close two sessions later
10/08/02… Higher SPX close two sessions later
09/20/02… Higher SPX close four sessions later
09/18/01… No higher SPX close 2-4 sessions later
03/20/01… Higher SPX close four sessions later
12/21/00… Higher SPX close two sessions later
10/13/00… Higher SPX close four sessions later
10/18/99… Higher SPX close two sessions later
09/01/98… Higher SPX close four sessions later
08/28/98… No higher SPX close 2-4 sessions later
06/24/93… Higher SPX close two sessions later
02/17/93… Higher SPX close two sessions later
06/18/92… Higher SPX close two sessions later
06/26/90… Higher SPX close two sessions later
11/11/88… Higher SPX close two sessions later
01/21/88… Higher SPX close two sessions later

SPX & NDX Hit 5-Day Lows, New 52-week Lows Fail to Expand (both exchanges)
08/25/10… Higher SPX close two sessions later
07/20/10… Higher SPX close two sessions later
06/30/10… No higher close within two sessions
01/28/10… Higher SPX close two sessions later
11/20/09… Higher SPX close one session later
08/11/09… Higher SPX close one session later
07/07/09… Higher SPX close two sessions later
02/23/09… Higher SPX close one session later
12/02/08… Higher SPX close one session later
11/21/08… Higher SPX close one session later
10/09/08… Higher SPX close two sessions later
10/07/08… No higher close within two sessions
09/18/08… Higher SPX close one session later
09/17/08… Higher SPX close one session later
08/20/08… Higher SPX close one session later
06/12/08… Higher SPX close one session later
06/03/08… Higher SPX close two sessions later
01/23/08… Higher SPX close one session later
01/07/08… No higher close within two sessions
01/02/08… Higher SPX close one session later
11/21/07… Higher SPX close one session later
11/12/07… Higher SPX close one session later
11/09/07… Higher SPX close two sessions later
07/31/07… Higher SPX close one session later
06/08/07… Higher SPX close one session later
04/12/07… Higher SPX close one session later
12/22/06… Higher SPX close one session later
11/03/06… Higher SPX close one session later
05/18/06… Higher SPX close one session later
01/03/06… Higher SPX close one session later
12/08/05… Higher SPX close one session later
11/30/05… Higher SPX close one session later
08/24/05… Higher SPX close one session later

Categories : Archived EOD Commentary, End-of-Day Commentary

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