Question

Which of the following are used as indicators of a strong market in the future?I. The advance-decline spread is increasing at a time when the advances outnumber the declines.II. The level of short interest is relatively high.III. The net difference of odd-lot purchases minus odd-lot sales begins increasing.IV. The trading volume increases in a declining market.A) I and II onlyB) III and IV onlyC) I, II and III onlyD) I, II, III and IV

Answer 1

A) I and II only

Step-by-step explanation:

Advance decline ratio states the number of companies that have shown positive move visa a visa the number of stocks that have shown negative move

Hence the higher the ratio, the market as a whole is indicated as a stronger market

Rest of the options are indicative of bearish outlook