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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 683.47+0.6%4:00 PM EST

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To: Vitas who wrote (25852)9/15/1999 2:29:00 AM
From: Area51  Read Replies (1) of 99985
 
Thanks for double checking.
The March 56 - 57 data was probably excluded because the DJIA was not trending up over this period of time; also there was a new low in the DJIA which was confirmed by a new low in the A/D in early 1957. (from mid 57 there was a relatively mild 18% correction)
decisionpoint.com

The 1986 -1987 divergence does seem to extend around 68 weeks and could probably be included as a third data point (depending upon the specifics of how the period of divergence is defined). That would give a third data point of about a 30% decline (at least it was over quick).

I don't think it's much good for timing, but does indicate a period of high risk where some hedging or decreased stock market exposure is probably wise.
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