Chris Perruna posted on his blog his simple approach to measure market strength. He measures the difference between 52 week new highs and 52 week new lows for NYSE and NASDAQ. He is not paying attention on extreme readings, but rather focuses on major turning points in the differential – the change from negative to positive reading and vice verse. Chris says that we need a differential of at least +100/200 to confirm a genuine uptrend. Currently, we are far from that.
