Info!! Indicator Update For October 13Th

Last week, the indicator review concluded, "In sum, weakness has expanded this week, non dried up. As long equally this is the case, it remains premature to conclude that a durable bottom is at hand." In retrospect, that was the understatement of the year. We saw a historic turn down lastly week, inwards which all major indices roughshod to meaning ship marketplace position lows.

As of late noted, nosotros saw novel lows inwards the Cumulative NYSE TICK; coin flows into the Dow stocks equally good turned decidedly negative. Also equally noted during the week, the novel high/new depression measures as well as percentages of stocks trading higher upwards their moving averages all hitting lows that I convey non seen inwards many years of next these measures.

To give an thought of the weakness, of the xl stocks that I runway inwards my handbasket (five highly weighted issues inside each of 8 S&P 500 sectors), all are trading inwards downtrends past times my Technical Strength measure. This is the starting fourth dimension time this has occurred inwards several years of tracking this indicator. What it tells us is that the marketplace position has sold off the expert amongst the bad: this has been indiscriminate selling.

As farther mensurate of the breadth (and indiscriminate nature) of the selling, a expect at roughly of the indicators tracked past times Decision Point finds that the advance/decline trouble for NYSE mutual stocks but has hitting a three-year low; less than 3% of NYSE stocks are trading higher upwards their 200-day moving average; as well as (this is my favorite) 406 of the S&P 500 issues (and 82 of the NASDAQ 100 issues) made 52-week lows on Fri alone.

The huge volatility (with a chiliad indicate Dow hit on Friday) offers both direct a chance as well as chance to daytraders; the indiscriminate selling offers direct a chance as well as chance to longer term investors. We're seeing a salubrious bounce earlier the opened upwards on Monday, which mightiness laid out a procedure of base of operations building; I volition demand to come across testify of a drying upwards of selling describe per unit of measurement area earlier final that the worst is over for stocks. Thus far, every indicator tells us that weakness has been expanding, non drying up.
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