Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Bond Market Panic Continues Towards May Expected Japanese Rate Hike Volatility Spike - 24th April 25
Stock Market Tarrified as President Dump Risks Turning Recession into Stagflationary Depression - 21st April 25
President Dump Delivers BEAR MARKET - Stock Market Battles Between Order and Chaos - 7th April 25
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stocks Bear Market Next Downleg About to Begin?

Stock-Markets / Stocks Bear Market Nov 18, 2008 - 10:37 AM GMT

By: Marty_Chenard

Stock-Markets

Best Financial Markets Analysis ArticleIs the stock market close to deciding whether to give us another leg down?

Today' chart looks at "the change of balance fight" between how many stocks are shifting between being Very Strong in Strength, or Very Weak in Strength.


Today's Question: Can this "change of balance fight" chart analysis signal new down turns in the stock market?

For the answer, let's go to today's Lead/Lag Indicator chart of the "Very Strong stocks minus the number of Very Weak Stocks".

The chart below goes back to the beginning of 2008.  For a down turn signal, a support trend line must be broken like the instances at the end of February, mid May, and mid August ... see the vertical red dotted lines
(A, B, and C) for when this occurred.  As you can see below, in all 3 cases, the market retreated afterwards. 

Note also, that this Lead/Lag Indicator shows a series of lower/highs that continued to generate lower/ lows with more damage occurring in the stock market.  Also note how the lower/ highs all failed at points 1, 2, 3, and 4 when they reached the red resistance line.

Notice that after the peak failure move at label 4, the Lead/Lag Indicator dropped like all the previous occasions.  But, also notice that the Lead/lag Indicator has continued making higher/lows and higher/highs since bottoming out ... so it has been trending up.

Do we now get another drop with a lower/low that takes the market down another leg?

The answer will come soon because the indicator ended yesterday being very close to retesting the support line.  If the support gets tested and breaks to the downside in the next few days, then that would be a condition favoring more downside action.  (The Lead/Lag Indicator is posted on the paid website every day and will be reposted here in early December.)

 

____________________________________________________________________

*** Feel free to share this page with others by using the "Send this Page to a Friend" link below.

Send This Page To a Friend

By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools.  As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL.  He is an advanced technical analyst and not an investment advisor, nor a securities broker.

Marty Chenard Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in