Stock Indicator Creating Top Similar to 2000?
Chris Kimble | Mar 16, 2023 01:16PM ET
The NYSE Composite is a very broad measure of the stock market with over 2400 companies listed. So when the NYSE begins to underperform, market participants should pay attention.
Well, this has been happening over the past year… and it may be reaching a tipping point.
Below is a long-term ratio performance chart of the NYSE Composite to S&P 500 index ratio. You can see how the NYSE has turned lower of late in a topping-like formation.
More importantly, we ask if this topping formation could be a head and shoulders pattern? The last head and shoulders pattern of consequence appears at the Dot.com highs. Yikes!
Currently, this pattern bounced off of 12-year uptrend support. But with the banking news of late, this ratio is still trading on thin ice.
If this thing tips over at this support level, it would send an important cautionary message to the broader market. Stay tuned.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.