The “Junkie Market” Is Back Again

by Dana Lyons

image

An abundance of New 52-Week Highs AND 52-Week Lows has been a warning in the past.

Today’s Chart Of The Day looks at a phenomenon that we’ve highlighted in the past on several occasions and which we have termed, “the Junkie Market”. The idea is a simpler offshoot of the notorious “Hindenburgh Omen”. Essentially, it describes a condition in which there are relatively large numbers of both new 52-week lows and new 52-week highs. In the past, such occasions have often occurred within close proximity of market tops.

READ  No Free Market In Gold, Just Constant Government Intervention

As today’s chart reveals, we just experienced a relatively elevated number of both new highs and new lows – over 100 to be exact – on both the NYSE and Nasdaq exchanges.

READ  A Perfect Storm Is Brewing: Stock Market Crash Like No Other Coming In Weeks Or Months
image

As the chart shows, similar past occurrences, at times, took place near important market tops. So is the current episode indicative of a market top? Or will the market trample over this phenomenon as it has most “red flags” in recent years?