Exercise #3 Shown here are four scenarios for the NYSE Bullish Percent. Click the most appropriate scenario given the description. 2.)In evaluating your individual positions in the account, you find that most stocks are still on buy signals but some stocks are starting to give initial sell signals and many are coming from well above their bullish support lines. You've started to use some protective puts in your account. Which NYSE Bullish Percent picture is most likely to correspond with this situation? Your answer was C. Scenario C Correct! You're really getting the hang of how the markets ebb and flow. The NYSE Bullish Percent has just reversed down into O's to suggest that the defensive team is on the field and that condition comes from a very extended level on the bullish percent chart. We want to implement wealth preservation strategies at this point. Individual charts are likely to just as described - many are still in positive trends but breakdown are beginning to occur - when a reversal down comes from such a high level. There are many ways to play defensive and one of those can be to purchase protective puts. Go to the next question.