$RHSPX is the S&P 500 High-Low Index Ratio. This is calculated by taking the S&P 500 New Highs divided by the S&P 500 New Lows. We use this as a contrarian indicator. When the $RHSPX spikes below 20% to some very low number under 10%, this usually means that the $SPX is near or at a bottom.
As of July 27, 2007, the $RHSPX is at 7.4%. While the $RHSPX can continue to go even lower, we are probably near or at a bottom on the $SPX.
Shouldn't be Used By Itself
These indicators should not be used by itself. Combined with other technical analysis such as resistance and support level analysis, these indicators can be very useful tools.
Other Bottom Indicators
Today's Chart with the information above.
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