hard · Volume Spread Analysis wyckoff-phases-schematics
An index is making marginal new highs, but you observe that several leading stocks in the 'Early-Cycle' sectors are already beginning to show lower highs and rallies on low volume.
How does 'Market Rotation' explain this phenomenon?
- Professionals are distributing early-cycle stocks while using late-cycle sectors to prop up the index, masking the overall weakness.
- The late-cycle sectors are now clearly leading a fresh bull market, and the broad index is transitioning into a markup phase.
- Market-makers are simply 'Churning' the entire index to engineer a broad shake-out of weak holders across every single sector at once.
- The index is merely entering a 'Re-accumulation' phase and will soon break out decisively once the lagging stocks finally catch up to it.
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