Tronicta, the highest number of LMP breakdowns (14) occurred just last Thursday, on Aug. 20, 2015. That kind of damage being widespread and deep and coming after about 6.5 year of a bull market, could either be the beginning of the bear phase of this market cycle. Or, it could be a larger 'correction' that we did not have, since the bottom of this market cycle that started in March of 2009.
Hopefully we would get a 'clue' of which way the larger market will be heading after few weeks.
Having said that, The LMP Indicator, gave a temporary 'minor alert' that was positive last Friday (Aug.21st). It continued also yesterday. This in itself by no means can be taken as a clue that the markets will soon recover. What the Indicator can reflect only... is what happens ahead in the the economic and political arena. That's what can impact the Indicator 'data' in the cumulative action of the markets to give a clue of a 'trend formation'.
A weekly check/update of the LMP is more appropriate and for detecting likely 'trend' changes, if any, beneath the surface of the Larger Market. The question is what are the 'undercurrents' and if momentum is growing positive or negative. Hopefully, we can get some sense for a likely clue in the next several weeks. And it depends on what happens in the near future to impact the 'data'. After such a jolting big fall in all stock markets worldwide, it takes time for 'the dust to settle'. GLTY
