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Gauging Market Strength After a Move to New Highs

Posted on May 15, 2008

Whenever a market makes new pricehighs or lows over a period of time, I like to examine whether thenumber of individual stocks making fresh new highs or lows has expanded.This tells me whether the move has been broad-based or simply dominatedby a limited number of sectors. Interestingly in the recent market,we've seen considerable sector rotation, with new highs lagging as thestock indexes moved higher. Most recently, however, as noted in my Twitter comment, we've seen leadership from the small caps as well as NASDAQ stocks, suggesting a broadening of the rally....

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highs , lows