Indicator Update for October 20th
By Brett Steenbarger at TraderFeed.
Excerpt: "Last week’s indicator review concluded, ‘I will need to see evidence of a drying up of selling pressure before concluding that the worst is over for stocks. Thus far, every indicator tells us that weakness has been expanding, not drying up.’ This past week, we saw a dramatic move higher in stocks, followed by an almost equally dramatic move downward, as volatility continued at extreme levels. So how have indicators fared?
Money flow has continued weak and the advance-decline figures suggest that no broad-based price strength is yet evident…
Thus far, I am working with the following assumptions:
1) The market made a momentum low for the recent bear move, and we are now in the process of bottoming;
2) Significant market declines (1974, 1981-2, 1987, 1990, 1998, 2002-3) have taken weeks to months to form bottoms, and the current bottoming process could be similar;…"
Full article and charts here.
