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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 665.67-0.9%Nov 17 4:00 PM EST

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To: bobby beara who wrote (8862)3/23/1999 7:59:00 PM
From: dclapp  Read Replies (2) of 99985
 
let me add one more thing to bb's list:

here's the idea: <<if>> huge divergences between the indexes and the AD line lead to broad sell-offs, <<<why is that>>>???

my answer? the declining AD line means that real people are losing real money in the market. At some point, they say "piss on it" and leave -- if not "all at once" (panic selling) at least in a short amount of time (worried nervous "weak hand" selling).

and that, I think is what a "sharp correction" (we don't have bear markets anymore, of course, only "corrections" -- see? I watch TV!).. or a BK really is.

doug (master of stating the obvious...)

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