Info!! How Weak Is This Market?

I lately noted that it has been rare historically to honour over 50% of all listed stocks making novel 52-week lows on a given trading day. When nosotros accept seen such occasions, such every bit May, 1970 together with October, 1987, it has non been odd to come across multiple such weak days, every bit really oversold markets beget farther selling inward the curt run. Interestingly, Midweek qualified every bit such a weak hateful solar daytime on the heels of Monday's historic weakness. On Wednesday, nosotros had over 5200 issues across the NYSE, ASE, together with NASDAQ brand fresh 20-day lows together with over 4000 brand novel 52-week lows. Over one-half of NYSE stocks made novel annual lows on Wednesday, next inward Monday's footsteps.

Statistics covered yesteryear Decision Point farther give away the historic extent of marketplace weakness. Only 3% of stocks inward the S&P 500 Index together with 4% of NYSE issues are forthwith trading higher upwardly their 200-day EMA--a lower grade than seen during the 2001-2003 comport market, together with the lowest grade since the panic turn down of 1987. Among mutual stocks alone inward the NYSE universe, 1 made a 52-week high; 1048 made novel lows, a novel tape for this comport market.

Bottoms are made when selling becomes exhausted together with long-term participants perceive value together with elevator stocks sharply off their lows. That exhaustion tin come about over a menses of months, every bit fewer stocks together with sectors brand novel lows over fourth dimension together with private stocks together with sectors honour fresh buying interest. Thus far, we're non seeing such selling exhaustion; weakness has, together with then far, begotten farther weakness. While it is tempting to telephone telephone marketplace bottoms together with choice upwardly bargains, all nosotros tin grade Midweek is that a historically weak marketplace merely got weaker.
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