What’s the best thing to talk about when the market is firing on all cylinders? Recessions, of...
How to Gauge Market Sentiment with the NYSE Highs/Lows Line
08/18/2009 10:40 am EST
The NYSE Highs/Lows (H/L) Line is a market breadth indicator that compares the number of stocks on the New York Stock Exchange (NYSE) that are making new 52-week highs with the number of stocks that are making new 52-week lows.
What the NYSE Highs/Lows Line Tells Us
The NYSE Highs/Lows Line tells us one basic thing: Whether bullish or bearish sentiment is moving the stock market.
When more stocks on the NYSE are reaching new 52-week highs than are reaching new 52-week lows, the H/L Line moves higher. And when the H/L Line is moving higher, you know that bullish sentiment in the market is increasing.
When more stocks on the NYSE are reaching new 52-week lows than are reaching new 52-week highs, the H/L Line moves lower. And when the H/L Line is moving lower, you know that bearish sentiment in the market is increasing.
Watch the video now for more:
By S. Wade Hansen of LearningMarkets.com
Related Articles on STRATEGIES
One sector that has treated us right is the small cap stocks, which we recommended towards the end o...
The market has been remarkably resilient; most U.S. companies are doing well, and the S&P 500 ap...
Aging economic recoveries and bull markets carry special risk for anyone who is too easily enamored ...