Weekend Dec 30 2018
Please review Tom McClellan's 10-1 chart
Advance Decline Line confirms this idea as do other indicators
The last double bottom led to a rally in early November. This may be a low of more significance gven the action of this past Wednesday up 1,000 and the thursday test and re bound
New Lows NYSE
Look carefully and yes in one day new lows shrunk forom 1,256 to 29, a 97% drop! I have repeatedly mentioned the expanding new lows displayed in the WSJ. Bottoms usually are resolved in such a spike fashion.
New Highs to New Lows Confirms this idea
The ratio of new highs to new lows decreased in one day from-695 to - 26 a net change of 1,031 from the day before.
New Lows NASD
This is a drop of 73% in one day,again a dramatic reversal. SO NYSE and NASD new lows seem to be confirming a low in the making.
Summation Index
This indicator looks to be bottoming as it did in late October .
% Above 200 Day MA
This indicator looks to be bottoming in the same area where the 2016 low took place.
Same Indicator Last six months
This has not turned up but as with the others looks to be seeking a bottom.
ETFs and Stocks
Financial ETF
All the Economy ETFs are trying to turn up,
this is the financial index of banks, I took a position in this.
XRT Retail
Retail looks much the same oversold and trying to bounce.
Cullen Frost Bank
It is said that investors toss perfectly good companies over board in bear markets. Here is such an example
A rally back to 100 seems reasonable.
BRKB Big reversal in Berkshire Hathaway
187 to 2015 in three days, another confirmation
Transports 2 Hour
Transports two hour chart is turning up but obviously needs a lot of follow through.
Okay that's good for now.
The continued weakness in the energy sector is troubling and probably predicting a world slow down in the economy.
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