Tuesday, May 15, 2012

Market Breadth Ratios are not weak enough to indicate an “extreme selloff”

The Market Breadth Ratios are weak but not weak enough to indicate an “extreme selloff” in the market.
If we get an indication of “extreme selloff” then it is a good time to enter the market. The most recent “extreme selloff” happened on Oct 3, 2011. That signal gave us a trading period of 29 days (about 6 weeks).

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