Market Breadth: 52-Week Highs/Lows

Because of the broad market implications and forceful nature of new 52-week highs/lows, market technicians keep a close eye on this statistic. The field of technical analysis has designed a number of indicators to grade the underlying momentum created by the events driving the market in either direction.

Forces of Highs and Lows
When shares of a publicly traded company hit a new high for the year, everyone involved can rest assured that things are on the right track. Not only are investors rewarded, but the work of the company's CEO, executives and employees is validated. All this optimism in the business attracts new attention from traders and institutional investors looking to capitalize on the stock's momentum.