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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 B. Normally Distributed
You got it! You're getting a great feel for the overall market risk by looking
at this picture. While some sectors are on the oversold side of the curve and some are on the overbought 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 to next question.
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