SmarTrend Weekly Performance Statistics
Last week was the first week in some time where the number of new Downtrends outpaced the number of new Uptrends. We are seeing the results of this shift in trend with today's decline in the market as the prior month's gains are consolidated. We noted here several weeks ago that the ratio of Uptrends to total trends (83%) was approaching a peak relative to historical levels found in our statistical studies. These peaks are almost always followed by a corrective period as the market fails to find new buyers for stocks at higher prices. Please read our daily Morning Call newsletter for insight into how long and deep such a corrective phase may be.
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