• 287 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

  1. Home
  2. Markets
  3. Other

It is Kind of a Natural Phenomena, Isn't It?

That is ... when the market moves higher and higher, stocks make new highs, and more new highs, and then ... more new highs.

What if that wasn't happening?

Well, new highs continue on up higher because investors are chasing particular stocks. If investors aren't chasing stocks, then that says there is a reluctance about the perceived future of the stock(s) being considered.

So, if New Highs weren't moving higher and higher, then that would be a "red flag" that something wasn't quite right.

Today's New Highs chart is below, and it is showing some pretty poor action. Normally, the blue bars continue up, higher and higher in an up trend signifying that stocks are being chased by investors ... and that is a good sign.

However, the current action (seen inside the black box) shows a stalling action which is a reluctance for investors to blindly pay a higher premium. The only reason you would NOT pay a higher premium than the most recent price, is that you don't believe the stock is going higher, or that it won't go high enough to make the risk of purchasing worthwhile.

So, the action on the New Highs is saying that investors are hesitant in believing that stocks will continue to move higher. Until, and unless this changes, this will remain a red flag.

S&P 500 New Highs Chart

 

Back to homepage

Leave a comment

Leave a comment