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.


This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.

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 SentimenTrader.com on 2020-09-23.

At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.


Follow us on Twitter for up to the minute analysis of market action.