High/Low Index warns of major divergences
High-Low Index
Similar to the Hindenburg Omen, the High-Low Index measures the ratio of new 52 week highs and lows occurring at the same time. The index equals new highs as a percentage of (new highs + new lows). I smoothed it using a 6 week moving average:
These ratios are already at levels previously associated with a major sell-off in the indices, not with markets near their all time highs:
S&P:
Nasdaq 100:
Dow:
Toronto Stock Exchange:
