Courtesy of Doug Short.
Advisor Perspectives welcomes guest contributions. The analysis presented here does not necessarily represent the views of Advisor Perspectives.
The health/condition of the broad market should not be overlooked but also not overstated. In “focusing” on the broadest measures of the stock market (the NYSE and Wilshire 5000), the chart below illustrates that they both remain inside of large flag/pennant patterns.
A great deal of attention is being focused on the S&P 500 as it deals with the 800 pound resistance line (see post here). From an even broader market perspective, don’t lose sight of the NYSE/Wilshire patterns.
When it comes to portfolio building or overweighting towards equities, investors would want to see the top of the flag/pennant patterns break to the upside to signal across-the-board health for the majority of companies.
(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com
