Significant damage to breadth | stockbee


Significant damage to breadth

In last few weeks there has been significant damage to breadth. There has been negative breadth thrust.

The implication is clear. Any next up leg will need to start with a breadth thrust.

A bounce not supported by significant breadth will be short lived.

If more selling continues then we will have a very good setup on long side. The selling would lead to readings on primary indicator going to extreme and that would be good for a sustained rally.

In the short run after market being down for so many days in a row, a chance of reflex bounce are extremely high. However sentiments paint mixed picture. The Investors Intelligence sentiment is at 47.4% bullish. Which indicates very high bullishness.

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