One notable from Friday was that the number of NYSE new highs expanded to the largest number in over a year. That’s quite remarkable considering the SPX closed at a 50-day low just 4 days ago. In looking at my new high data going back to 1970, I looked for other times where the NYSE new highs count reached the largest level in over a year within 1 week of a 50-day SPX low. I only found 3 other instances. All 3 saw further rallying over the next month, but returns after 1 month were very different. Charts of each instance can be found below.
So the previous 3 times we saw such an extreme there were solid gains posted over the next month, but no consistency after that. Of course three instances is too few to put any real faith in. Still, I thought the action was interesting and notable, even if for nothing else than it is so unusual.
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