“Thank you for posting the interesting article on the Hindenburg omen, and thank you to the subscriber who contributed the article. My question is: do you know where in the Collective one can obtain the SP1500 sub chart posted by Chris Puplava showing the historical progression of new highs and new lows?”
Eoin Treacy's view Thank you for this question which we received on the 20 th . I emailed Chris Puplava to ask how he created the chart and he very kindly pointed me towards the HILO function on Bloomberg.
Here is an updated version of the chart for the S&P1500. I also created this chart for the Dow Jones Stoxx 600 Index which has some very similar characteristics. When a substantial portion of the market has been rallying impressively for much of the year, it is perhaps not so surprising that there are such a small number of new 52-week lows. I wonder whether there will be a lag in how long it takes this number to increase.
What seems clear is that the weakness that has gripped a number of emerging markets is being followed by weakness in more developed markets. There are of course contributing factors to this action such as the potential for foreign intervention in Syria but the result is the same. The S&P 500 continues to extend its pullback towards the 200-day MA while the Stoxx 600 encountered resistance in the region of the May peak and is at least consolidating its recent advance.