"A reason to be concerned?"

tenteddies

Last week we posted an update on our New Highs fast indicator. We will post it again today, for the important message it is sending.

The chart below shows one of the ways we measure what is happening relative to New Highs on the New York Stock Exchange.

*** The first chart is LAST Week's chart, and the second chart is yesterday's so you can easily see the important action that happened on the indicator.

On March 22nd., the indicator made its first lower/low since early February. That meant that this indicator was showing an increased risk condition as the market attempted to move higher.

Last week, the indicator showed that it was continuing to move lower, and if it had moved below our horizontal bullish line, the odds were that the market will pull back or correct. See the second chart for the current action ...


This chart shows that our indicator moved down to the horizontal neutral line ... held, and then bounced up since last week.

That was an important event last week, because it showed where the "technical support" line is.

Note the blue support line that we drew. The pattern is looking like it will be much like the previous one see on the graph. When this indicator falls below the support and goes below the blue horizontal line, the market will pull back or correct.

H@T

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