Technically Strong Market

See: Chartist. See: Technical Trading. See: Breakaway Gap. See: Technical Indicator.

As Olivia Newton John sang, "Let's get technical...technical...I wanna get technical...lemme hear your charts talk..."

Imagine the nerd-help of a mad scientist saying, “Well, technically sir...” and you’ll understand the “technical” in “technically strong markets.”

A technically strong market means technical data analysis was used to parse out the “health” of a market, which has shown itself to follow chartist patterns with pretty high recent correlation. When the market has hit the high end of the U shape, it has declined each time the last 16 months...and when the market has hit the low end, the buck-toothed center of the bottom of the U pattern, it has ascended.

If you then add to that other elements like increased volume, decreased yields, more foreign money coming from cash into equities, and like 7,000 other things, then a technical analyst would claim that the market overall here is a Strong Buy, and that investors should get long the market here.

That's a technically strong market, but nowhere as strong as Olivia's abs.