Geoff Garbacz: Last week we reviewed the state of the equity market through the advance/decline lines. At that time, the daily advance/decline lines looked strong and now the weekly advance/decline lines have improved as well.
If there is trouble ahead, it isn’t visible in this statistic.
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The S&P 500 (INDEXSP:.INX) bottomed on Oct. 9 at 1,646.47. By the Oct. 23 close it had rallied to 1,746.38. This 100-point swing in less than two weeks was this year’s sixth strong rally.
A pullback followed each rally.
The average move has been 6.92%. The median move is 6.89%. The current rally is 5.43% so far. There could be some more upside, but how will we know if the end is near?
The honest answer is that we won’t know until after the peak is in. The only thing we can do is watch our indicators to see when the rally is long in the tooth. They can help us see whether the run is near its end or whether an outsized move to the upside is in the offing.(...)Click here to continue reading the original ETFDailyNews.com article: How To Spot A Fading Stock Market RallyYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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