• 708 days Will The ECB Continue To Hike Rates?
  • 709 days Forbes: Aramco Remains Largest Company In The Middle East
  • 710 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,110 days Could Crypto Overtake Traditional Investment?
  • 1,115 days Americans Still Quitting Jobs At Record Pace
  • 1,117 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,120 days Is The Dollar Too Strong?
  • 1,120 days Big Tech Disappoints Investors on Earnings Calls
  • 1,121 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,123 days China Is Quietly Trying To Distance Itself From Russia
  • 1,123 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,127 days Crypto Investors Won Big In 2021
  • 1,127 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,128 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,130 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,131 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,134 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,135 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,135 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,137 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

When Does It Become Important to Watch the Level of New Lows?

Every day, the number of stocks reaching New Lows is posted on the New York Stock Exchange. Most of the time, following the number of New Lows is a pretty boring exercise.

However, if you know what levels have been historically important, then it becomes more interesting to watch.

For example ... for a healthy market, I want to see New Lows below 28.

The next important level to watch is above 50. Above 50 is where you want to start keeping your eyes open, because the market is normally experiencing higher duress above that level. Many times, above 50 becomes a "tipping point" where fear levels increase, and investors begin selling.

The higher the number that the New Lows rise when above 50, the higher the VIX typically rises and investors sell as fear levels increase.

Normally, I don't bring the New Lows to your attention ... but today I will because of the jump in numbers between last Friday and yesterday. Last Friday, the New Lows were still at a healthy number of 16. Yesterday, they jumped up to 47.

Yes ... the number of New Lows are still below 50 right now, but a jump up to 47 should at least put it on your radar screen to start watching.

NYSE New Lows

 

Back to homepage

Leave a comment

Leave a comment