Deteriorating breadth pressures the rally | stockbee

5/13/2016

Deteriorating breadth pressures the rally

In last 8 out of 11 days there were more breakdowns than breakout. It indicates steady distribution in to strength.


The sectors that had bounced from weakness in many cases are having hard reversals indicating the bounces were just counter trend moves.

Some pullback after a strong bounce is to be expected , but if breadth continues to deteriorate at this pace , the rally will have tough time sustaining itself. 

3 comments:

Calydon said...

Why does the increasing number of stocks up 25% indicate a reversal trend?

Calydon said...

Please disregard previous comment, the number is decreasing, not increasing. :) Ok, what do you mean by 'steady distribution in to strength'?

Pradeep Bonde said...

Distribution means funds selling.