My breadth indicators are suggesting a quick, short-lived bounce will soon be had, likely tomorrow.
I say quick and short-lived because the red line, the number of stocks above their 5 day moving average, has not dropped to levels which usually sustain a longer lasting bounce. To indicate a longer bounce is possible, I would like to see a reading of 600 or lower.
The indicator I use to signal that a bounce is imminent is the green line, which is a percent ranking of the number of declining stocks. It closed tonight just above 80, which is the threshold I use.
While I am looking for a bounce, some range-bound trading or consolidation on Friday can remove the trigger.
“Nailed it, he did.”
Yoga, speaking on behalf of The Woodshedder.