[pcabc]

Indicators of an approaching Stage 4?

Looking at my recently posted breadth charts it looks like there are some consistent warnings for a coming Stage 4 in the index:

1. Cumulative New Highs - New Lows is breaking below its 100 day SMA.

2. The Weinstein Momentum and 1% A/D lines have descended below their zero lines.

3. The Gold Cross Index Crosses below its 50% level and is below its 20 day EMA (the % stocks above their 200 day EMAs might be substituted for this one).

To me these make sense and rely on different parameters, New High and New Low data, Advance / Decline data and the number of Gold Crosses.  It seems logical that it would be hard for an index to remain in Stage 2 or 3 for long if the above conditions are met.