Stock Market

SPX New Lows

I subscribe to the Smart Money Tracker and tonight Gary posted something on his public blog in regards to the new lows:

On Oct. 10th 92% of all stocks on the NYSE made new lows. So far that has been the internal bottom for this market. On each successive decline fewer and fewer stocks have been moving lower. Most of the stocks on the NYSE are not confirming the new lows. Not what you want to see happening if you are heavily short.

I laid over S&P500 Index chart (I’m sure DJIA would look the same) and the $NYLOW indicator chart.

Click to enlarge
1 year 6 months

Last 3 months

So the market is getting somewhat stronger, but that doesn’t mean we can’t go lower.

Still, I’m now being more cautious and covered my swing shorts (except SSO and FSLR which I will hold as “special cases”, oh and that jerk EEV, a very special case).