Short Term Breadth Nearing Buy Signal

The number of stocks above their 5 day moving average and the Decliners Indicator are near levels associated with a bounce.

We are looking at the red line and the green line.

The red line shows the number of stocks above their 5 day moving average and the green line is a measure of the number of stocks that are declining.

I would prefer the red line to be beneath 700; anything near 500 would be excellent, but it is getting close at 832. The Decliners Indicator works well on a cross above 70. At 81, we have that cross, but it would be nice to see it cross 90.

With the futures down -0.50% as I write, perhaps a morning gap down will be just what the market needs to achieve breadth levels that are extreme enough to get a bounce.