medium · Volume Spread Analysis background-trend-context
Historical data shows that indices can make new highs long after some sectors have started to decline.
Why does this 'Market Rotation' create longevity in bull markets?
- Because it forces the professionals to quietly re-accumulate the entire index.
- It prevents 'Weak Holders' from capitulating and entering the market too early.
- Late-cycle sectors prop up the index while early-cycle sectors are distributed.
- It ensures that 'Relative Strength' stays perfectly equal across every sector at all times.
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