The PowerShares ValueLine Timeliness Select Portfolio (PIV) tracks those stocks rated as the highest for potential price appreciation by ValueLine. Price of these “best” fundamental stocks have not been strong during the move up since March. Price is well below the 50% retrace level and shows no indication that buyers are attracted to these types of stocks at these levels.
The SP500 Index (SPX) has had a very weak volume bounce in the past three days after an correction back to the 50 day moving average.
The Nasdaq Composite (COMPQ) chart looks similar to the SPX chart. There appears to be little desire from buyers to accumulate shares at these levels. A break of the parallel angles on both charts would signal the end of the recent bull market move and a correction of a significant time period would follow.
Charts courtesy of Stockcharts.com
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