Info!! Making Feel Of This Wtf Market

Traders bring been experiencing an understandable representative of whiplash the final few days.  More than i someone contacting me has commented on the confusing nature of the marketplace action.  To endeavor in addition to brand feel of what has been going on, I included ii charts above, both of which I discovery helpful inwards gauging underlying marketplace trend.

The transcend nautical chart is the Cumulative NYSE TICK in addition to represents the release of upticks vs. downticks across all NYSE shares each infinitesimal of the day.  By cumulating that fourth dimension series, inwards the style of an advance-decline line, nosotros tin gain of feel for accumulation or distribution across the wide stock universe.  (Data obtained from read at the fourth dimension was that the wide marketplace had ceased to business office inwards a bull market, due to weakness across small-scale caps in addition to midcaps.

We tin encounter that the refuse inwards Cumulative TICK has continued with the recent marketplace decline, every bit we're at in i lawsuit seeing the weakness alongside small-scale in addition to midcaps extend to the larger caps.  Of item note, the Cumulative trouble has breached its early on August lows.

The bottom nautical chart is a fleck to a greater extent than sensitive in addition to is based on upside in addition to downside strength.  What we're looking at is likewise a cumulative line, but this is a cyberspace full of the release of stocks each twenty-four hr catamenia closing higher upward in addition to below their upper in addition to lower Bollinger Bands, across all NYSE shares.  (Data obtained via Bollinger Balance trouble peaked early on inwards July, dramatically underperformed at the August in addition to September peaks in addition to at in i lawsuit has fallen off the confront of the populace every bit few shares are trading with strength.  

By cumulating breadth data--I discovery these measures much to a greater extent than sensitive than the criterion advance-decline trouble gauges--we tin encounter what is happening over fourth dimension across all stocks, non exactly the large names that dominate the cap-weighted stock indexes.  It's because of the weakness inwards these measures that I bring non been inclined to purchase the marketplace but because it's oversold.

Further Reading:  Interpreting Market Action With NYSE TICK
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