Via Dana Lyons’ Tumblr,

An abundance of New 52-Week Highs AND 52-Week Lows has been a warning in the past.

Today’s Chart Of The Day looks at a phenomenon that we’ve highlighted in the past on several occasions and which we have termed, “the Junkie Market”. The idea is a simpler offshoot of the notorious “Hindenburg Omen”.

Essentially, it describes a condition in which there are relatively large numbers of both new 52-week lows and new 52-week highs.

In the past, such occasions have often occurred within close proximity of market tops.

As today’s chart reveals, we just experienced a relatively elevated number of both new highs and new lows – over 100 to be exact – on both the NYSE and Nasdaq exchanges.

As the chart shows, similar past occurrences, at times, took place near important market tops.

So is the current episode indicative of a market top? Or will the market trample over this phenomenon as it has most “red flags” in recent years?

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If you’re interested in the “all-access” version of our charts and research, please check out our new site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!

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