In the last few days, as we've seen some obvious signs of economic weakness and market weakness, we've had several of our Psychology Composite indicators move to a more positive stance. This was sufficient as of yesterday's close to move our Psychology Composite to P3. That is encouraging since this composite has shown some very healthy improvement in the last two months following the P5 it registered in early February.
However, the Value Line Appreciation Potential is still registering in the lowest 20% of its historical range. IF...our Psychology Composite improved to P2 or better, then that might tip the scales, but at this time, we simply do not have the necessary improvement.
So...the good news is that Psychology has improved to P3. That bad news is that it has not improved to P2. As a result, we still think, in our opinion, that this correction has a little more work to do to get us in a more bullish mood for the short-term.
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