By Chris Igou
How do you know when a bull market is close to ending? What's the simplest way to describe it?
How about this: A bull market is close to ending when more stocks are going down than going up.
I have tested hundreds of systems to figure out what works in the markets. It can get complicated. But I also like to keep things simple whenever possible... And this "stocks going up versus stocks going down" system is as simple as it gets.
Today, I'll share a simple version of this idea and explain what it says about the market right now...
We've dubbed this system the "Melt Down Indicator" in our office. It's that powerful.
It's called the advance/decline line. It's about as "dumb" an indicator as you'll ever find...