We consider the New High - New Low Index the best leading indicator of the stock market.
The New Highs are the strongest stocks on the exchange, the bullish leaders.
The New Lows are the weakest stocks on the exchange, the bearish leaders.
This ground-breaking book shows you how to use NH-NL in a variety of ways. It includes chapters on: The Weekly New High-New Low Index / The Daily NH-NL / Shorter-term NH-NL / The NH-NL Ratio / NH-NL in Worldwide markets.
The book includes 54 clearly marked up charts, many of them organized into educational series of charts.
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On the weekly chart, S&P stabbed below its channel and moved back inside - positive. The channel is hard to see on this chart, so I highlighted it with a short dashed line. Notice a similar occurrence in October 2012, which led to a rally.
On the daily chart, on Thursday it flashed a Spike Bounce signal, as the 20-day NH-NL crossed above its minus 500 level. This is a short-term buy signal.
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