{"id":530117,"date":"2010-04-16T12:29:00","date_gmt":"2010-04-16T16:29:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:424188"},"modified":"2010-04-16T12:29:00","modified_gmt":"2010-04-16T16:29:00","slug":"2-1-advancedecline-indicator-points-to-higher-stock-prices","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/530117","title":{"rendered":"2-1 Advance\/Decline indicator points to higher stock prices"},"content":{"rendered":"

A short-term pullback may be imminent, but a "very rare, but very significant" technical indicator is pointing to higher stock prices over the next couple of months, says Ron Meisels, a technical analyst at Phases & Cycles Inc. <\/p>\n

In a note to clients, Mr. Meisels highligted the 2-1 Advance\/Decline indicator that occurs when the number of advancing issues on the NYSE outnumber the number of declining issues by a ratio of two to one for a period of ten consecutive trading days.<\/p>\n

He said it usually occurs at major market lows and before March 2009 it had occurred only three times in 48 years. But over the past 13 months, the 2-1 Buy signal has been triggered three times: March 6, July 23, Sept 17.  <\/p>\n

"The message from the markets has rarely been more obvious," the technical analyst said. "Following earlier 2-1 Advance\/Decline Buy Signals, stock markets almost always rose to new all time highs, or within 10% of new highs, within 15 months or so."   <\/p>\n

Having reached an 18-month high this week, the S&P\/TSX composite exchange remains 20% of its record high. South of the border, the S&P 500 is still down 22%.  <\/p>\n

"While the 2-1 Buy Signal and the number of stocks making new 52 week highs all suggest that a market top is at least six months away, a short-term dip could occur at any time," he said.  <\/p>\n

"A short-term decline, which is likely to create more fear, could be just what is required to make stock prices rally once again, to fulfil what a host of other indicators have been suggesting for the longer term." <\/p>\n

David Pett <\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A short-term pullback may be imminent, but a "very rare, but very significant" technical indicator is pointing to higher stock prices over the next couple of months, says Ron Meisels, a technical analyst at Phases & Cycles Inc. In a note to clients, Mr. Meisels highligted the 2-1 Advance\/Decline indicator that occurs when the number […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-530117","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/530117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=530117"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/530117\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=530117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=530117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=530117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}