In bear markets you’ll find that the majority of stocks are making lower lows and lower highs in price.
With basic arithmetic, we can call those downtrends.
Using that same math, in order for stocks to be in uptrends, they first need to stop making lower lows.
“They need to stop going down before they can start to go up”, is how I learned it.
Going through my charts this weekend, I found this chart right here pretty interesting.
The last time Mid-caps, Small-caps and even Micro-caps made lower lows was almost 4 months ago: [Read more…]