Internal momentum shifts for the 1st time in 4 months

  • Jason Goepfert

    Jason Goepfert

    Published: 2020-09-23 at 09:00:00 CST

Ever since May 14, more securities on the NYSE have been hitting 52-week highs than 52-week lows. For the first time since then, more than 4 months, that changed with more lows than highs on Monday.

Below, we can see that when the net percentage of stocks at a 52-week low is greater than those at a 52-week high, the S&P 500 returned an annualized +3.9% versus +10.8% when this figure was positive.

Monday's session ended a streak of nearly 90 days with a positive net number of 52-week extremes. That stopped one of the longer streaks in more than 50 years. 

Streak of NYSE 52-week highs greater than lows

After other long streaks ended since 1965, the S&P struggled a bit short-term, with higher risk than reward, but showed good medium-term returns.

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We also looked at:

  • Full table of signals when new lows first exceed new highs
  • The correlation between the Nasdaq 100 and S&P 500 is breaking down
  • What happens when silver crashes so soon after a multi-year high
  • More than half of the stocks in the German DAX index are below their Bollinger Bands
  • The dollar is climbing above its 50-day moving average

The post titled Internal momentum shifts for the 1st time in 4 months was originally published as on on 2020-09-23.

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