Over 10% of stocks on the NYSE+NASDAQ are making new lows.
Here’s the chart:
Let's break down what the chart shows:
The blue line in the top panel is the S&P 500 index price.
The black line in the bottom panelshows the percentage of NYSE+NASDAQ 52-week new highs minus new lows.
The Takeaway: We have a saying here at All Star Charts… The stock market can only decline with an expansion in the new lows list, it's simple math… and you know what… The number of stocks making new lows is higher than the number of stocks making new highs.
Yesterday, among the 7,422 stocks listed on the NYSE and NASDAQ, 997 made new 52-week lows, while only 101 achieved new 52-week highs.
That's 11.8% relative to new highs and over 13% new lows on an absolute basis.
This is the lowest breadth reading since October 2023. At that time, the S&P 500 experienced a pullback of 10.3% over 63 trading days. Currently, the S&P 500 has declined by 6%, but this pullback has occurred in just nine trading days.
Is there room for new lows to keep expanding? Absolutely.
Can the Bulls rebound from here? Of course.
However, when assessing the current situation using a weight of the evidence approach, there is now a slight tilt in favor of the bears.
Are you tightening your belt here? Or buying the dip?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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