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I noticed an odd change in the NYSE breadth figures beginning around 6/25/97.
Prior to that, the number of unchanged issues has been running steadily at
800+ issues for some time. Suddenly the number narrowed to the 500's and has
stayed there ever since. Does anyone know why? Was there some sort of
change in the way the figures are reported? (Can't imagine what)
The unchanged issues figure is important in a number of breadth indicators,
directly or indirectly. On a daily basis, a low number often marks a reversal
short-term. With a broader outlook, high numbers are typical of bull market
tops when there is divergence and complacency, and low numbers occur at
bear market climaxes when selling is most indiscriminate.
This shift in June was striking, yet the market neither reversed nor
accellerated noticably. If the reporting is consistent, it means that
suddenly more issues had a direction, whether up or down. Did something
dramatically affect the rate-sensitive issues at that point, or is there
some other explanation?
Wayne Moody
wlm95@xxxxxxxxxx
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