Since the March low, the stock market has been in a upward trend for about eight months. But some weaknesses developing now might sign a deep correction is near.
1. Divergences in market breadth and price, both NY A/D ratio and High/Low ratio.
2. Divergences between price and volume. While the prices are moving into new highs, the volumes are decreasing. When the prices come down, the volumes are increasing.
3. More and more stocks break down.
4. Major emerging market indexes and leading stocks show bearish volume patterns
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