Bearish Distribution in InvesTech’s time-tested indicator, the Negative Leadership Composite (NLC), just fell through -50 in an important warning that further trouble could be ahead. The continued building of Distribution indicates that downside leadership and the risk of a correction or bear market has begun to increase. This development warrants caution, and a sustained move through -100 would be a severe warning flag. Make sure to watch the NLC in the coming weeks as further deterioration in leadership will be a critical signal that the market could be heading for a breakdown.
