Financials and Industrials Lead New High Expansion

Arthur Hill

Arthur Hill

Chief Technical Strategist,

Chartists can plot High-Low Percent for the nine sectors to identify areas of strength within the stock market. The chart below shows the High-Low Percent ranked by this week's highest value. The finance, industrials and consumer discretionary sectors stand out this week because their High-Low Percent indicators hit the highest levels of the year. High-Low Percent for the finance and industrials exceeded +50%. Assuming virtually no new lows this week, this suggests that more than 50% of the stocks in these sectors hit new highs. XLY High-Low% ($XLYHLP) exceeded 20% the last three days and these are the highest readings since March 2015. 

The blue horizontal lines mark the +10% and -10% levels for High-Low Percent on each chart. A move above +10% shows enough critical mass to turn bullish (green arrows), while a move below -10% is considered bearish (red arrows). According to this indicator, six of the nine sectors have been bullish the entire year. XLE High-Low% ($XLEHLP) turned bullish in mid September. XLP High-Low% ($XLPHLP) and XLY High-Low% ($XLYHLP) were whipsawed the last few months, but both are on bullish signals now.  

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--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More