If The Rally Is Going To Have Legs. . .

. . .It needs to start behaving like a bull market.

Key Takeaway: An impressive bounce leads to marginal improvement but bull market behavior remains conspicuous by its absence.

After dropping to its lowest level of the year, our industry group trend indicator ticked higher last week. This was only its third weekly increase since the July peak. Our ACWI global trend indicator experienced a similar rise from similar depths.

While perhaps an encouraging start, last week’s rally still has work to do if it is going to persist and maturing into a period of sustained strength.

Our Bull Market Behavior Checklist remains unchanged from last week: