Conditions are getting close to a decision point on the New York Stock Exchange's daily New Highs.

On June 29th, the New Highs had hit a low and started an ascent that lasted until August 2nd. when they peaked and started trending down.

It has been a steady down trend, but not a big problem until now. As the New Highs move down, they are approaching a place where a "squeeze" will occur. When that happens, the New Highs will need to start a new up trend or there will be trouble.

Where is the squeeze level? As the New Highs move down, maintaining the daily 100 level is a very important level to maintain for a rally. Historically, below 100 is a high risk level, and below 50 is a real negative level.

Yesterday, the New Highs closed at 141 with a down sloping resistance line. The resistance for today is 151, so it is 1 point away from a level where a serious deterioration could start occurring. By next Tuesday, the down sloping resistance will be at 93 and that is a problem level. To not deteriorate further, you now want to see the resistance broken to the upside with the New Highs increasing. As stated, the resistance level is 151 for today.

(This chart is posted every day in Section 4, Chart 4 on our paid subscriber site.)