Exercise #4


Using the Sector Distribution Curve pictured here, answer the following questions.

1.) A composite picture of all the sector bullish percent charts would suggest that the market is:

Your answer was A. Oversold


That is incorrect. While some sectors are on the oversold side of the curve, the vast majority are huddled in the middle, or at the normal position on the distribution curve. As well, a look at the average reading of all the sector bullish percents tells us the average sector resides at 46% on its Sector Bullish Percent chart or at the middle of the field.
Go back to the question.