Today we’re taking a look at an index that often gets ignored. The Value Line Geometric Index is currently flirting with a multi-decade breakout. This is an equally weighted index using a geometric average, so the daily change is closest to the median stock price change. It’s a much broader measure of the market vs something like the Dow Jones Industrial Average.
Is this an epic failed breakout and now US Stocks come tumbling down?
Or is this just a successful retest of this multi-decade breakout and now we rip higher into the end of the year?
If we’re above the highs from the past 20 years, it’s hard to be pessimistic about the future direction of US Stocks.
This is a big one!