TRADING 05 BULL OR BEAR MARKETS

[TREND1]

Question: Are you saying that the AD line always
peaks first? Is that carved in stone?

There have been exceptions, but they have been few
and far between. Since 1956 we’ve only found two
occurrences; the last one coming in 1976. The S&P
500 peaked in December of that year while the A/D
line defiantly continued to move higher and did not
peak until July of the following year. From top to
bottom the S&P lost 19% while the Dow lost 26%.
As things turned out, it was an interesting time in
which both bulls and bears
amongst advisory services
claimed bragging rights.