Friday, December 28, 2007

New York and NASDAQ New Highs/New Lows Index Is Ugly

These two charts are from -- which is still one of the best technical analysis sites on the web.

On the NYSE, the index is slowly drifting lower.

On the NASDAQ, it's dropping far faster.

This tells us a very important point: the number of stocks hitting new lows is increasing faster than the number of stocks that are hitting new highs. This is not a healthy development for a bull market.