The New Highs and Lows Trampoline

My pal Jack Damn posted the below on Chart.ly over the weekend and it was a great reminder of a metric I used to follow back in the October 2008 – March 2009 era.

What you’re seeing is the New Highs minus New Lows reading (atop the S&P 500) beginning to ameliorate into the end of last week even as the index itself continued its slide.  This is one of the best indicators of seller exhaustion and it often can act as a stock market trampoline, the effects of which we’re seeing today.

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Tags: $SPY

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