the Value Line Arithmetic index ($VLE) is a favorite of mine and has been a market leader
in the current cyclical bull market. It is a broad 1700+ stock unweighted composite. The
stock market has struggled over the past six months. The $VLE did make higher highs this year,
but has given up some significant ground since the end of Apr. What intrigues me is that on a
closing price basis, the index, despite its volatility, has held support on each of the trims it
has experienced. $VLE chart.
It has held at or near the 2875 level on a half dozen occasions over the past six months, and I
am reluctant to turn negative on the market when this key index -- a decent measure of the action
of the average stock -- steadfastly and successfully tests support.
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