Cycle screening measures strengthened but did not strongly confirm the turn in the market averages.
Yesterday in our Radio Free Wall Street program, I told subscribers how I had trained myself not to succumb to my own internal serial top caller and serial crash caller, based on my emotional reaction to every little 3/4% down day. I said that until support breaks, nothing has happened yet. Voila, support held and…
Cycle screening measures were in gear with the weakness in the market averages. All 9 measures and the aggregate and cumulative measures are on the same side and moving in the same direction. What does that say about likely depth and duration of the decline?
Numerous intermediate indicators have edged to the sell side. The shape of the down phase will depend on what happens around key benchmarks on the SPX, Dow, and QQQ.
Cycle screening measures made an across the board plunge, completely negating signs of strength from the past few trading sessions.
Today’s selloff has reinforced that 2020 was actually the top of the slightly up sloping trading range and not a breakout.
On a snapshot basis the indicators held a slightly bullish edge, but there are several caveats.
Once the early fireworks were out of the way, which included a spectacular but meaningless run to the next resistance lines around 2018, the market settled down to do exactly nothing. So what comes after nothing? The answer is in this report.
The market appeared to tip its hand on Thursday, both in the indicators for the broad market averages and in the cycle screening data.
The market is now threatening resistance in the 2010-2018 area and a number of cycle indicators are strengthening again. Where’s this thing headed? I tell you in this report.