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Stock Market Relative Strength Analysis Suggest More Falls in Share Prices

Stock-Markets / US Stock Markets Mar 16, 2007 - 03:12 PM GMT

By: Marty_Chenard

Stock-Markets

We don't show this chart very often, but one on the things that our paid subscribers see every morning before the market opens is our Ratio of the % of Stocks with Upward Strength vs. the % with Downward Weakness.

Every night, we run a strength measuring analysis of all the stocks on all the indexes ... on over 8,000 stocks. This is a measurement of the broad market for every stock with a value over $2.00.

Why is this important?

Very simply ... a market that is rallying up has more stocks trending up than down, so its ratio is a positive number. The higher the ratio number is, the stronger the rally gets. The opposite is also true ... when the Ratio is negative, then there are more stocks in a down trend compared to those in an up trend, and therefore the market trends down.


Is the Ratio positive or negative now?

The ratio is negative, and in fact, it went negative on February 27th. when the market saw its big down day.

The ratio trending during the last 12 days has been: -1.61, -1.82, -2.36, -2.81, -2.26, -2.12, -1.70, -1.53, -1.29, 2.33, 2.15 and -1.75 to 1 .

Why is this personally important to you?

Because a sustainable rally resumption by definition, cannot occur until at least one half of the stocks are trending up .

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.


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