Closing Lows vs. Intraday Lows
Principles of the Stock Market

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Have You Seen This?

Have You Seen This?

TECHNICALLY.  After yesterday’s fall, I now classify all the important indices as down below their previous correction lows of last August.  That may be some argument about my interpretation since I use the closing lows.  If one uses the extreme intraday lows of August 16th -- remember when the Fed turned the market around that day? – we’re still above those lows and thus holding support.  Over the years I’ve always pondered the significance in using closing lows versus intraday lows.  But I haven’t found any major discrepancies so far.  Now may be the first time if stocks hold over the next few days and rally off their previous intraday lows although not off their closing lows.  Schwartz View:  At this point therefore I see a stock market which has broken major support.  And thus will probably go lower in the days and weeks ahead as it tries to find the next price level where there are enough buyers to outnumber the sellers. 





Posted 01-11-2008 8:34 AM by Richard Schwartz