S&P 500, Nasdaq, Dow Jones Industrial, Transporters, Utilities, NYA Composite charts

After the Friday's decline the S&P 500 high-low range charts are more bearish - see chart #1. If you rotate the chart on 3/6/2015 it will look like the top 5 bars are "fingering us". Last time like that was seen on 12/10/2014 - Nasdaq 100 index was showing us a "finger" (see chart #2). After that the Nasdaq 100 dropped for 5%.

Technically speaking about it - the most bullish stocks started to decline. From the chart #1 you may see that on 3/2/2015, 135 stocks listed in the S&P 500 index were traded within 5% range from their 52-week highs. Now, most of these stocks dropped into the 10-15% range from their 52 week lows. Basically, the strongest decline happens among the previously most bullish stocks which were previously pushing the index up. Such sentiment may push the index lower because the rest of the stocks from the index basket were not and are are not strong enough to hold index from a drop.

So, lets see whether we see further drop next week.

Chart #1: S&P 500 High-Low Range Charts

20150306sp500.png


Chart #2: Nasdaq 100 High-Low Range Charts

20141210nasdaq100.png


Charts courtesy of http://www.marketvolume.com/
 
Thanks this is interesting!
Maybe, we might hit the 2130/40 where there is strong resistance to rotate lower in next couple of weeks or so ...

viktor_k67 said:
After the Friday's decline the S&P 500 high-low range charts are more bearish - see chart #1. If you rotate the chart on 3/6/2015 it will look like the top 5 bars are "fingering us". Last time like that was seen on 12/10/2014 - Nasdaq 100 index was showing us a "finger" (see chart #2). After that the Nasdaq 100 dropped for 5%.

Technically speaking about it - the most bullish stocks started to decline. From the chart #1 you may see that on 3/2/2015, 135 stocks listed in the S&P 500 index were traded within 5% range from their 52-week highs. Now, most of these stocks dropped into the 10-15% range from their 52 week lows. Basically, the strongest decline happens among the previously most bullish stocks which were previously pushing the index up. Such sentiment may push the index lower because the rest of the stocks from the index basket were not and are are not strong enough to hold index from a drop.

So, lets see whether we see further drop next week.

Chart #1: S&P 500 High-Low Range Charts

20150306sp500.png


Chart #2: Nasdaq 100 High-Low Range Charts

20141210nasdaq100.png


Charts courtesy of http://www.marketvolume.com/
Click to expand...
 
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