Lower Highs & Higher Lows

[JTH]

All

What is your bias when a market develops a lower high and higher low during a bull market? Does it change if it's a bear market? I realize this a short-term example, I just wanted to get some different perspectives to add to my own.

Thanks

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[James48843]

good observation. It makes me want to pay closer attention. We may be running out of steam on the climb back up. Take a look as the Shainghai index - as that one seems to be running about 3 or 4 weeks ahead of the dow- with pretty parallel results.

 

[tsptalk]

All

What is your bias when a market develops a lower high and higher low during a bull market? Does it change if it's a bear market? I realize this a short-term example, I just wanted to get some different perspectives to add to my own.

I have always believed that what you describe (an inside day) is a continuation pattern, meaning whatever the prior trends was, the inside day would reconcile in that same direction.