noted inward the previous indicator review. We tin locomote run across from the Cumulative Demand/Supply Index (top chart), a cumulated stair out of upside as well as downside momentum, that nosotros are at oversold levels. These levels are roughly those that bring typified intermediate-term bottoms since 2007.
Note that we've broken downwards inward the 20-day novel highs/lows (middle chart), amongst many to a greater extent than stocks registering intermediate-term lows than highs. Indeed, the divulge of 65-day lows on Fri was greater than whatsoever marking posted since the July bottom.
Finally, nosotros run across from the fantabulous (bottom) nautical chart from Decision Point, that the advance-decline trouble specific to the S&P 500 stocks is approaching its lows from July as well as August. These levels, both inward the A/D trouble as well as the novel highs/lows, should stand upwards for meaningful back upwards if the longer-term uptrend is to stay intact. Taking out those summertime levels would propose a to a greater extent than significant, longer-term corrective process.
At this juncture, I await those summertime levels to hold, placing us at the real to the lowest degree inward a wide trading attain as well as setting us upwards for an eventual exam of the bull highs. The indicator readings, however, are losing strength--not bottoming out--so I am non inward the fashion of catching falling knives. Should nosotros run across show of diminished selling pressure level as well as downside momentum this coming week, I volition probable live on nibbling at the long side.
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