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3 Reasons the Selloff Isn’t Finished

These signals are flashing a warning to investors

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New Highs vs. New Lows

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And finally, in another measure of market breadth, the ratio of new highs on the NYSE vs. new lows is rolling over on a scale not seen since January’s selloff driven by fears over the health of the emerging markets.

A drop in the NYSE High-Low Index below its 20-day moving average, which has just happened, has been a consistent sell signal over the last year.

For now, I continue to recommend investors play it defensively with a focus on safe haven assets such as U.S. Treasury bonds, which I’ve added to my Edge Letter Sample Portfolio.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters, as well as Mirhaydari Capital Management, a registered investment advisory firm.

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