New highs/lows

I think the reaction to the Spanish bailout may have scared some people.  Traders sold immediately into the big gap up on Monday and it was trend down all day.  Take a look at the new highs chart.

On the big gap up day we had over 100 new highs, but look what happened the next day.  Despite the sizable rally that day we dropped down to only 40 new highs.  Even though we got above the prior day's high yesterday, we still only saw 50 new highs.  That is not much more then we had on the down days into the June 4th low.   Here is a look at the new lows chart.

New lows dropped down quite a bit since the June 4th low.  However, we actually had more new lows on 6/12 then new highs.  Given the size of that rally that seems very odd.  I think many traders have become more cautious.  If that is the case a full retest of the June low may be in the cards.

Bob