No need to look for Buy Signal now. It was a touch down situation that it was so close and then reversed abruptly. Better off not trading this market. Risk is extremely high both up and down. The line in the sand was crossed. Bear market is here. Do you agree?
Telling you. I am quite fearful now also. But on the indicator IWM:SPY, I draw a downtrend line, the indicator IWM:SPY is right at the downtrend line but has not cross above. I am also looking at the PPO histrogram, I look for one to three shorter (negative) bar as an indication of reversal to the upside. Both has not happen.
ROC (Rate of Change) is at an extreme level of 7.5 for the pass many months now and may have reversed up. But during the fall 2008, ROC did went a lot lower.
You like to see strong reversal to the upside. Yesterday action was pretty strong. Today it is going to retest the low. If the low holds, the Short should starts to cover and buyer should come in.
The market is definitely in trouble. The up move may be limited. Worse, if the bull don't act out, we may see a fresh leg down that equiv to the leg that end of July down leg meaning a visit to the SPY 1100 level. By that time, we all know the BEAR Market has began. Sy Harding is the only person I follow that seemed to get in right all along this time. We all work on hindsight, which is not very helpful.
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