Monday saw the worst point drop in the Dow Jones Index history, closing down 1175 points. I am sure you have read all kinds of articles trying to explain why the market is plunging so deeply. Overall my opinion is that as the market dipped it kept hitting lower valuation levels which are set up as “stops” by everything from institutional investors, retail investors, robot investors to automated trading programs. This keeps causing the market to drop. Rallies are continually sold into and when they start to turn lower as we saw Monday morning, these same valuation points are being triggered and more selling erupts. As we know selling breeds more selling and buyers just keep fleeing lower.
Here is the Market Breadth Indicator outlook for Tue Feb 6 2018.
Members should review the Market Breadth Indicator as there were significant changes in the market breadth indicators on Monday following the huge plunge in the indexes.
The market breadth indicator analysis and outlook is for FullyInformed Members.
Advance Decline Numbers Outlook For Tue Feb 6 2018
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