Handsome gains in NYSE index may be over

Courtesy of Read the Ticker.

The NYSE Summation index (Ratio Adjusted) is a very good measure of the performance of advancing and declining issues within the NYSE index.

It takes new money or true liquidity to have more advancing stocks than declining stocks, if the new money flow into the stock market slows or stops then NYSE Summation Index (ratio Adjusted) struggles to get over +500 or falls. If this happens over a longer period then this evidence that a stock market top is likely. Sure you may get the NYSE index moving up and down within a 10% range, buy the days of 30% gains are very unlikely while the NYSE Summation Index (Ratio Adj) struggles at +500.

This quote is appropriate:

Bernard Baruch..“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.”..

The above quote means, if you have green on the screen, green becomes cash at times like these.

The chart below shows the NYSE Summation index (ratio adj) performance at the two previous market tops. History is repeating. Time to keep and eye on this index.

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