Cycle screening measures strengthened on Wednesday at a clip consistent with the gain in the market averages. The fact that there was no positive divergence in the aggregate measure before the rally started raised a sustainability question. These instances are relatively rare, and virtually always result in a retest of the low, a lower low, or at least a big retracement of the uptick as the screening data shows some improvement. That retracement didn’t materialize. The trading range has become so thin after so many crossings over a period of months that it is virtually frictionless.
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