Don't Ignore This Chart!

REITs, Utes and Healthcare Lead New High List


Chartists looking for the sectors with the most stocks in strong uptrends can turn to the High-Low Percent indicators. High-Low Percent equals new 52-week highs less new 52-week lows divided by total issues. This indicator is positive when new highs outnumber new lows and negative when new lows outnumber new highs. The more positive the indicator, the more new highs and the more internal strength.

The chart below shows S&P 500 High-Low% ($SPXHLP) in the top window and the High-Low Percent histograms for the top five sectors, as ranked by the 5-day average of High-Low Percent. Note that the 5-day SMA is not shown to keep the chart clean. Only three sectors stand out: REITs, Utilities and Healthcare. These three stand out because their High-Low Percent values reached or exceeded the +10% threshold over the last five days (green zones).

Industrials High-Low% ($XLIHLP) and Finance High-Low% ($XLFHLP) have been positive the last few days, but both are short of the 10% threshold, which I deem important. A move above +10% shows enough "critical mass" to support an uptrend in the sector. These two are close, but no cigar just yet. Note that S&P 500 High-Low% is also short of the +10% threshold.

Here are the 12 symbols for High-Low Percent: $XLKHLP ,$XLFHLP ,$XLIHLP ,$XLCHLP ,$XLYHLP,$XLBHLP ,$XLEHLP ,$XLUHLP ,$XLREHLP ,$XLPHLP ,$XLVHLP

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- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

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
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