Both short-term and intermediate term breadth indicators are signaling that a bounce is imminent…
The top pane with the red line and gray histogram measures both short-term and intermediate-term breadth. The red line measures the number stocks above their 5 day moving averages while the gray histograms shows the number of stocks in an uptrend. Both indicators are at levels which typically precede a bounce.
The second pane from the bottom, green line, is the Decliners Indicator. Anytime this indicator is above 70, a bounce is likely. Today is the 4th day that this indicator has closed above 70.
Finally, the 52 week high/low indicator is extended far enough beneath its 9 day moving average to signal that a bounce will come soon.
The market has suffered 4 down days in a row, yet has still closed above its 20 and 50 day moving averages. Support is near and the market is oversold in both time and breadth.
As always, another great analysis. Love reading your posts- keep up the good work!
Thanks!