Friday, March 19th. - Stock Trends, Charts, and Commentary

tenteddies

Friday, March 19th. - Stock Trends, Charts, and Commentary

In every stock market rally, a Leadership stock relationship exists between what the stock market does and the level and trend of the number of Leadership stocks.

Our daily study for our paid subscribers reports on the number and trend of the Leadership stocks compared to the number and trend of Broad Market Stocks. The ratios for this study are derived from comparing the Very Strong to Very Weak stock numbers, and the Broad Market ratio comes from comparing the Strong to Weak stock numbers.

Today's chart shows what the numbers and relationships have been since last October.

On February 16th. of this year, both Ratios went positive. The important thing is whether or not the red line (Leadership stocks) is "higher than the Broad Market blue bars". That is important because in rallies, it is the Leadership stocks that pull up the Broad market stocks.

When the Leadership stocks are dropping, the market is under duress. When the Leadership Stock line is LOWER than the blue bars, then you have correction periods like last year.

This chart was updated as of the close yesterday.

benshou

Thanks for sharing

20108

Thanks.

ut1984