Friday -- March -- 29 -- 2020
covers the "broad" market and it
is our creation.
SPREAD reached bear market territory 3 weeks ago!
The SPREAD closed Friday 3/27/20, at 3,559.54 up +429.25 (+13.71%) this past week versus off -588.39 (-15.82%) the previous week. The current discount to the
high at off -34.92%. One definition of a correction is a discount to the 52 week high
of 10%. A bear market is a discount to the 52 week high of 20%.
watching the VL falling faster than the NY, making the markets weaker everyday. These two
basically the same market, it's just that one has a few
hundred large over-the-counter stocks and the other has no
stocks. When both indices are climbing we get a
strong bullish sign for the near term markets, but when both indices
are falling we get a bearish sign for the weeks ahead. Its when the VL
climbs faster than the NY that we have a stronger market.
concern now is, since
they are the same markets, they should never be so far apart, but they
have been for quite some time now. It does mean when we do get a major
correction, it could be the one.
One thing to note is the chart above covers over 20 years, therefore changes take time, meaning there could still be several months left for the bull.
distance between the two
(spread) continues to grow, if the VL is climbing faster than the NY,
or shrink, if the VL is falling faster than the NY. If we see the NY
climbing while VL starts falling we could be seeing the very first sign
of a sizable correction starting.
The SPREAD closed up (+6.64%), year-end 2005, up (+14.04%), year-end 2006, off (- 2.08%) , year-end 2007, off - (34.52% ), year-end 2008, up (+ 81.74%) , year-end 2009, up ( +33.27%) , year-end 2010, off -123.73, or (-5.80%) year-end 2011, up + 331.45, or (+ 16.50%) year-end 2012, up + 1013.58, or (+ 42.48%) year-end 2013, up + 261.89, or (+ 7.67%) year-end 2014, off -258.76, or (-7.04%) year-end 2015, up 23.93% for 2016, up 15.57% for 2017, off -12.99% for 2018 and up 23.61% for 2019.
SPREAD is unique to the Stocks in the Spotlight since we
designed it in 1090 by producing an "equal
allowing a better view of the
longer term markets when comparing the big OTC stocks to the New York
Exchange listed stocks.
We end up with a theory:
are not able to move very far, in either direction, without
SPREAD index is different
than the normal Value Line/New York
| Quotes &News | Market Comment | Research
Reports | Spotlight Futures |