• Weakness Under The Surface?

    by  • May 28, 2013 2:28 pm • Breaking News, Broad Market Analysis • 4 Comments

    I noted last week the Russell 2000 (RUT) potentially having trouble near the 1,000 area, now this week there is another concern out there.

    Last week saw 673 buying climaxes, the most since 4/30/10 and a subsequent 17% drop in the SPX.  A buying climax occurs when a stock makes a new 52-week high, then closes lower on the week.  Large clusters of them can show deterioration under the surface.  To see such a large amount last week is definitely a concern to be following.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


    4 Responses to Weakness Under The Surface?

    1. Dave Razo
      May 29, 2013 9:12 am at 9:12 am

      I agree, a useful study. Is there any script or a study that I might use to track this data?

      • May 29, 2013 9:52 am at 9:52 am

        Hi Dave. We track it internally with our database. I don’t know of anywhere you can get if for free unfortunately.

    2. Dirk Friedrich
      May 28, 2013 6:08 pm at 6:08 pm

      That is an interesting metric to monitor!

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