Today, let's take a quick look at a couple of examples of Psychology that tells us again to be a "little" careful. We've given you multiple examples in the last few weeks, but here are a few more.
In the chart above, you can see that in many cases, the greatest number of stocks making new 52-week highs reaches their highest number while the current rallies are still relatively early in their maturity. Then, we start getting fewer and fewer of the stocks participating.
The next chart takes a look at the McClellan and 21-Day Oscillators.
The 21-day oscillator (orange line above) is somewhat in that same vein as the net hew highs indicator, showing the very "overbought" characters relatively early, and then as the momentum of the bullish advance deteriorates, the market indices themselves may continue to advance (and the 21-Day Oscillator improves), but internally, the stock market correction continues.
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