52 Week New Highs are flashing buy like Nov 7th, 2009

The 52 Week new highs chart has turned bullish over the last few days.  The number of succeeding stronger bars and the 5 DMA have shown signs of underlying market strength.

The pattern setting up is similar to the pattern from the October lows from which the 52 week new highs fired a suggested buy on November 7th.  The following chart is the 5 day gain from that buy indication:

The indices are piled on top of each other but are basically grouped around a 5% gain.  The NYSE and DOW were on the bottom with the Nasdaq composite and RUT leading the pack.

This next chart is the current returns since the firing on the close of 2/11:

The RUT and the NasdaqX have already had positive returns with the NYSE and Dow on the bottom.  If the pattern plays out as in November 2009 we can expect another 4% from the RUT and 5% from the NYSE and $SPX over the next four days.

This entry was posted on February 15, 2010 at 3:43 pm and is filed under New 52 Week Highs, NYSE 52 Week New Highs. You can follow any responses to this entry through the RSS 2.0 feed.