To: Southwestern Financial Analyst Program

From: Egan Cornachione

Date: July 9, 2015

Subject: Dorsey Wright Market Technical Indicators Report

This memo contains a summary of the market indicators that are relevant to the FAP portfolio.

Following is a chart containing the current level, signal, status, and chart level for five different

indicators: Bullish Percent, Positive Trend, 10 Week, 30 Week, and High/Low. I am including a

description of each indicator to help with interpreting it. After the chart is a description of the

important changes in the indicators.

Definitions and Information about each indicator:

Bullish Percent: The percentage of stocks in each universe (All, NYSE, NASDAQ, etc) that are

on a buy signal. Above 70% is high risk and below 30% is low risk.

Positive Trend: I couldn’t find their definition of this, but I am assuming it would be a measure

of the percentage of stocks on a positive trend, or above the trend line.

10 Week: Percentage of stocks in each universe above their 10 week moving average. A

percentage under 30 that starts to go up means a buy signal, and if it above 70 then reverses

down, there will be a sell signal.

30 Week: Percentage of stocks in each universe above their 30 week moving average. Again,

over 70% means it is higher risk and overbought, under 30% means oversold.

High/Low: The number of new highs made in the stock universe divided by the total number of

new highs and new lows.

Summary of Indicator Statistics

! indicates within 1% of reversal. Bold X or O means reversal on June 30

All

Indicator Current Chart

Level

Signal/Col Status

Bullish

Percent ^BPALL

50.30%

(-0.54)

54% Sell in Xs Bear

Correction

Positive Trend ^PTALL 53.56% 50% Buy in Os Bull

(-0.24) Correction

10 Week ^TWALL 36.13%

(+2.25)

34% Sell in Os Bear

Confirmed

30 Week ^30ALL 44.87%

(+0.66)

46% Sell in Os Bear

Confirmed

High/Low ^ALLHILO 56.44%

(-4.58)

58% Sell in Os Bear

Confirmed

New York Stock

Exchange

Indicator Current Chart

Level

Signal/Col Status

Bullish

Percent ^BPNYSE

52.19%

(-0.72)

54% Sell in Os Bear

Confirmed

Positive

Trend ^PTNYSE

59.36%

(-0.24)

62% Buy in Xs Bull

Confirmed

10 Week ^TWNYSE 29.61%

(+2.52)

28% Sell in Os Bear

Confirmed

30 Week ^30NYSE 40.92%

(+0.66)

42% Sell in Os Bear

Confirmed

High/Low ^NYSEHILO 49.05%

(-3.64)

50% Sell in Os Bear

Confirmed

NASDAQ/OTC

Indicator Current Chart

Level

Signal/Col Status

Bullish

Percent ^BPOTC

50.57%

(-0.40)

52% Sell in Xs Bear

Correction

Positive Trend ^PTOTC 51.82%

(-0.20)

52% Buy in Xs Bull

Confirmed

10 Week ^TWOTC 40.79%

(+2.12)

40% Sell in Os Bear

Confirmed

30 Week ^30OTC 48.39%

(+0.75)

48% Buy in Os Bull

Correction

High/Low ^OTCHILO 68.04%

(-5.04)

70% Sell in Os Bear

Confirmed

World Indicator Current Chart

Level

Signal/Col Status

Indicators

Bullish

Percent ^BPWORLD

44.05%

(-0.62)

46% Buy in Os Bull

Correction

! Positive

Trend ^PTWORLD

50.33%

(-0.57)

56% Buy in Xs Bull

Confirmed

10 Week ^TWWORLD 34.15%

(+2.32)

32% Sell in Os Bear

Confirmed

30 Week ^30WORLD 47.48%

(+0.98)

48% Buy in Os Bull

Correction

High/Low

^WORLDHILO

No data available

Several changes occurred over the month of June

All Stocks

o Went from a Bull Correction to Bear Confirmed on the 30-week, and now have a

sell in O’s signal, with a chart level at 46%, down from 52% at the beginning of

the month

o The 10 week chart level went down from 44% to 34% and is now a sell in O’s

NYSE

o Bullish Percent, 30 Week, and HiLo are all now Bear Confirmed and Sell in O’s

NASDAQ/OTC

o HiLo is at 70% of chart level and is Bear Confirmed with a Sell in O’s signal

(seems like it is more bullish than NYSE)

World Indicators

o 10 week is Bear Confirmed while the 30 week is Bull Corrected, so still bullish

and a Buy in O’s signal

o Looking into the first week of July, World indicators have significantly dropped

and are Bear Confirmed for 10 and 30 weeks and Bull Corrected for Bullish

Percent and Positive Trend

Overall, it seems as though the market is turning bearish, with most indicators dropping and

switching to sell signals over the month.