Technical Indicators: A Primer
This column was originally published on RealMoney. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
New Highs and New Lows
These indicators are pure and simple: They tell how many stocks are making 52-week highs or lows on any given day. They can be used to show divergences in the market as well. For instance, if the Dow Jones Industrial Average 
makes a new low and the number of stocks making new lows shrinks, then there must be a reason there was no participation on the downside. In that case, the market has a positive divergence.
In a bull market, the number of new highs could be expected to expand as the market rallies. If it does not expand, then you need to consider the possibility that this represents a failing rally and be decidedly more cautious on the market.
...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,405.83 | 1,102.35 | 2,190.86 | 34.82 |
Oil *
71.98
|
|
UP
68.78
|
UP
6.41
|
UP
7.13
|
UP
0.59
|
10 Yr
3.48%
SPDR Gold
110.82
|
|
+0.67%
|
+0.58%
|
+0.33%
|
+1.72%
|
Data delayed 20 minutes |
Connect with TheStreet