After a great response to the weekly market review I added on Friday, I felt it was necessary to update the NH-NL ratio chart to show how this indicator feels about the market. We have had five consecutive positive weeks for the first time since April 2006 but we are hovering in a neutral zone near 40% with a brief spike above 70% a couple weeks back. The month of April 2006 averaged 64% while the first week was in bullish territory above 80%, something we haven’t seen since.
I often get a question about the difficulty of this calculation to stay above 80% and I respond with the ratios from 2003 and 2004. Below is a sample of the data extracted from January 2004 when the ratio averaged 97% for the entire month. The readings were as follows (chart below):
Sunday, January 4, 2004: 892-10 (97.78%)
Sunday, January 11, 2004: 792-7 (98.25%)
Sunday, January 18, 2004: 896-6 (98.67%)
Sunday, January 25, 2004: 505-8 (96.88%)
Where do the Major Indexes stand in 2006?
NASDAQ: +1.38%
DOW: +7.81%
NYSE: +8.21%
S&P 500: +5.84%
Below is an updated look at the weekly averages for the NH-NL Ratio:
Saturday, January 14, 2006: 500-32
Saturday, January 21, 2006: 348-46
Saturday, January 28, 2006: 516-46
Saturday, February 4, 2006: 449-44
Saturday, February 11, 2006: 229-57
Saturday, February 18, 2006: 306-42
Saturday, February 25, 2006: 420-36
Saturday, March 04, 2006: 399-49
Saturday, March 11, 2006: 162-84
Saturday, March 18, 2006: 459-53
Saturday, March 25, 2006: 312-52
Saturday, April 01, 2006: 441-39
Saturday, April 08, 2006: 481-58
Saturday, April 15, 2006: 150-103
Saturday, April 22, 2006: 540-75
Saturday, April 29, 2006: 353-76
Saturday, May 6, 2006: 503-74
Saturday, May 13, 2006: 384-116
Saturday, May 20, 2006: 64-211
Saturday, May 27, 2006: 57-182
Saturday, June 3, 2006: 119-93
Saturday, June 10, 2006: 72-204
Saturday, June 17, 2006: 41-310
Saturday, June 24, 2006: 56-238
Saturday, July 01, 2006: 127-198
Saturday, July 08, 2006: 143-95
Saturday, July 15, 2006: 74-273
Saturday, July 22, 2006: 66 – 307
Saturday, July 29, 2006: 163-151
Saturday, August 5, 2006: 194-132
Saturday, August 12, 2006: 88-210
Saturday, August 19, 2006: 178-96
Saturday, August 26, 2006: 140-74
Saturday, September 2, 2006: 285-42
Saturday, September 9, 2006: 143-60
Saturday, September 16, 2006: 244-75 – This Week
Piranha
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