Bullish Events for Technical Analysts | CFA Level 1 Exam Prep

Bullish Events

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Question

Which of the following events would a technical analyst interpret as bullish?

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Explanations

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A. B. C. D.

B

(1) Decline of specialist's short sale ratio to below 30%;

(2) Increase in debit balance means that investors have to post increasing margin to for more investments;

(3) Percentage of bullish stock futures speculators decline (because if market is bullish then speculation is irrelevant) - are all signs that the market may be turning bullish.