The recent narrowing of the stock market rally was typical of a tired market. The August declines that occurred when the weekly A/D lines were in a strong uptrend and making new highs generally lasted only 4-6 weeks. The very negative A/D readings on Thursday makes a very sharp 100 point Dow rally likely in the next week. The decline will go low enough to convince those that wanted to buy the dip that the trend has changed. The AAII bullish % was 33.7% and it will typically drop to the low 20’s at a market low.

Source: Forbes August 12, 2017 14:26 UTC