Since I featured this reversal indicator in Saturday’s edition (and for the last month), I definitely want to give you the latest on the number of NYSE stocks hitting new lows. Why? Well, it hit reached levels we’ve never seen before….literally.

I thought Friday’s 869 new lows was big. Tuesday’s 1304 new NYSE-listed lows is the biggest number I could find since the data has been recorded starting in 1962.

Just to really illustrate how big of a deal this is, I want to zoom in on the daily chart where the spike in new lows is stark. Then I want to show you a long-term chart of the same data. It’s well beyond stark.

Here’s the daily.

And here’s the monthly.

Folks, either the sellers way overshot, or we’re entering an almost apocalyptic time for the market. I know things are bad, but I have to believe the utter devaluation of stocks during the first half of the year predicted (successfully)the shape of things as they are now. In other words, it’s all ‘priced in’.

The new low reading has been quite good at telling us when the capitulations have occurred, so I’m still inclined to view this as a bottom/bullishly. That’s the contrarian view, but it works more often than not….particularly when we’re beyond extreme.

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