This is a typical reversal of a negative market that turn to rally. Notice (A) The Barometer-plot (yellow) turns up and begins to advance, then the positive (green) and negative (red) boundaries turns up, all three plot-lines begin advancing from the Barometer base line. 

A market that is positive and has the ability to rally will have this yellow, green, and red advancing configuration (B). The Barometer-plot (yellow) will most always stay above the positive (green) line. During minor pullbacks, the Barometer-plot (yellow) can recede to the positive (green) line but will "climb the back" of the positive (green) boundary.

When a rallying market begins to lose its power to advance, the Barometer-plot (yellow) will recede and normally move lower through the positive (green) and negative (red) boundaries (C).

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Last modified: 05/09/08

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