Bull Market Transitions and the Race to the 200-Day
As I mentioned in the analysis portion of the Daily Battle Plan, the market is doing a number of correct things as its been bottoming out. Also, the distance between the 200-day on the S&P has been halved in the past 4 weeks and the % distance on the Q’s and the 200-day is even less than the S&P. Plus with the slope of the 200-day significantly dropping, it’s easier for the market to transition back above it.
I’ve professionally lived through 8 bear markets including 1981, 1984, 1987, 1990, 1994, 1997 (brief but scary), 2000-2002, and 2007-today so I have a bit of history here. Each of these bears markets has been different but each has had basically the same characteristics when they rallied out of them and transitioned into a bull market. Over the next few days I will share with you what these characteristics have been and how they can guide you if in fact this market really is transitioning back into the next bull market. Not only will you be able to use these guidelines now, you’ll likely be able to use them for years to come.
This is from Larry Connors Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.