Updated: The New Lows Count .. Bullish or Bearish?
Today, we updated the NYSE's New Lows chart new yesterday's data.
Below you will find last week's New Low's comments with an updated chart for today.
"Analyst often point to the connection between the number of New Lows on the NYSE and the panic levels on the sell side (or lack of panic in the market).
When you think of it, it all makes sense. If the New Lows were increasing, then that would have to mean that more investors were dumping their stocks ... and the more they dumped, the higher would be their fear levels.
So, what would you think about a New Lows level of 10 on the NYSE yesterday?
Not much fear being exhibited?
When we look at the New Lows, we apply a scale to it. From a bias measuring standpoint, we consider anything below a count of 28 to be positive.
And ... what was yesterday's reading at the close? A nice low number of 10 which means the fear levels were low and no one wants to fight Bernanke's money injections.