Exercise #3 Answer True or False for each of the statements. 4.) In Scenario B, the returns in Favored Sectors vs. Unfavored Sectors are beginning to really show up. Your answer was A. True Correct! You're doing a great job in combining the different principles of the Point & Figure methodology. The NYSE Bullish Percent shown in this scenario continues to have the offensive team on the field but with a reading of 54%, about mid-field, sector selection becomes very important. In market such as this, the Favored sector returns are likely to start showing a positive divergence from the Unfavored sectors, which too maybe rallying, just not exhibiting market leadership qualities. Go to the next question.