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On May 9-12, between 1360-1625 of US stocks reached the lowest price they had traded in the past 250 days. From May 13-26, even though the indexes declined further, no day had more than 551 new lows. This meant that while the indexes declined to new lows, fewer stocks did. This is the reverse of what we had in November when the indexes were hitting highs but the number of new highs was declining and new lows were climbing, which alerted me to exit the market.  Tracking the number of new lows and highs may be a worthwhile activity for gauging the market’s strength. This strategy is somewhat different than just calculating the difference between yearly highs and lows. I use TC2000 to count and record the number of new highs and lows after each day’s close. ATH=all-time high and the last column is my QQQ short term trend count. Having 100 or more new highs in a day is one of 6 components  in my GMI (general market index) and explains why it increased to 1 ( of 6) today.

See how QQQ and SPY  traded during this period.

QQQ is now in a weekly BWR down-trend. All shorter term averages (red lines) are declining below the longer term averages (blue lines) with a white space separating them. Note the prior BWR up-trend pattern that lasted from May 2020 until January 2022.

The last time there was such a weekly BWR down-trend was in 2008. See how it ended. The white space disappears and the red and blue lines overlap. You don’t have to get in at the bottom. One strategy is to wait for the BWR pattern to end and really go in when the next RWB up-trend pattern begins. Another is to wait for the weekly closes (dotted line) to rise above all of the red lines and lead them higher. In a down-trend the weekly closes are leading all of the red lines down.

I have recently discovered  a Youtube site (The Restless Page) that my late co-instructor, David, built that shows you how to add some of my indicators and create Guppy charts etc. using TC2000. I have used TC2000 for over 20 years and it is easy to use,  because I can!  I hope you enjoy them. Here is a weekly Guppy chart of QQQ showing it has entered a BWR down-trend (all short term averages , red lines, are declining below longer term averages, blue lines, with a white space separating them).

Here is ARKK, which is in much worse technical shape.