At Dorsey, Wright Money Management we have followed the NYSE high-low index for years. In fact, Harold wrote his CMT paper on this indicator. It’s useful for market entry and it’s not a bad overall breadth indicator.
Now Mark Hulbert is reporting that the market indexes may be months away from a peak based on the high-low data. While we’ve never looked at the high-low data for this specific feature, it is true that markets almost never peak at the point of maximum momentum.
