Weak Rebound In New Highs

For such a strong price move during September, we would expect NYSE new highs to have approached the levels seen earlier in the year. The weak rebound in new highs points to a narrow rally, and now we have a negative divergence that suggests the rally has topped or will do so soon.




So far, we do not have enough evidence in the price action to confirm the top is in. In fact, the decline does not yet look impulsive. It may take a few more days before we can determine whether we have truly seen the top of wave B up.