Monday, October 31, 2016 11:03:21 AM
BY ART HILL
Conclusions
Even though the charts show the breadth indicators weakening the last two months, I view this weakening as part of the correction process. Stocks decline or move sideways during a correction and the breadth indicators reflect this corrective process. I do not know if this correction lead to bearish breadth signals and a bear market. That would be predicting the future! Instead, I will work under the assumption that broad market environment is bullish until proven otherwise and I will turn bearish when the indicators tell me to turn bearish.
Conclusions
Even though the charts show the breadth indicators weakening the last two months, I view this weakening as part of the correction process. Stocks decline or move sideways during a correction and the breadth indicators reflect this corrective process. I do not know if this correction lead to bearish breadth signals and a bear market. That would be predicting the future! Instead, I will work under the assumption that broad market environment is bullish until proven otherwise and I will turn bearish when the indicators tell me to turn bearish.
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