ABSTRACT
A classic, strong up market is not particularly difficult to recognize, even for the casual observer. The problem arises in determining if the signs of weakness are reliable signals. There will be times when the signals are ignored or overridden by other indicators, and other times when the signals indicate an approaching turn. The strong market is easily recognized, but it is always time to look for signals of weakness. Recognizing and understanding the meaning of these signals is important for the individual investor. A market top will eventually be reached, the market will correct, begin a secondary downtrend or trend will turn bearish. Obviously if the number of advancing issues is dropping, it means the declining issues and/or unchanged issues are increasing. The total number of issues doesn’t change significantly enough to be a concern. On a day-by-day basis when the market is strong, advancing stocks tend to outnumber declining two to one or three to one or more.
