Futures are bouncing overnight as I write this. But there is no denying that some technical damage has indeed been sustained in many charts beyond a mere garden-variety correction.
As as example, even though homebuilder Lennar reports earnings next week, the stock is sporting a textbook megaphone bearish topping pattern which confirmed lower with a high volume sell-off on Thursday. After a steep uptrend for quarters on end, the megaphone indicates an increasingly loud argument between bulls and bears in the form of higher highs but also lower lows. This setup tends to favor a bearish resolution due to the sloppy nature of the pattern instead of the quiet, tight consolidation you see which often favors bulls. The first chart below of the daily timeframe illustrates a textbook (and sizable) megaphone which projects a move much lower if bulls do not immediately reverse this carnage.
The next chart is CTRP, which has had a great run. But with China crashing I would look at this ADR as a quick short idea if it breaks that rising channel lower highlighted.
As for the long side, stay tuned in the morning. I will have a new long-term investment idea which I think you will find appealing.
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Do you trust the oversold PPT reading ? Are you going long based
on the super accurate PPT readings ?
PPT nailed the last tradable bottom. Depends on your timeframe. Do what works best for you and your style.