- In terms of the US stock market, we are searching for a sign or a group of signs giving us the courage to act, hopefully before others.
- We have been conditioned to anticipate the end of a directional move before a major reversal to a new one. This makes sense, as turning points occur when there is a dramatic difference between buyers and sellers in transaction volumes.
- On the NYSE, 47% of the stock listed reached a new low. Similarly on NASDAQ, 49% reached a new low. Perhaps more convincingly, the volume of declining prices was about twice that of rising prices on the NYSE; whereas on the NASDAQ, it was about three times.
For further details see:
Inconclusive, But Trending Lower - Weekly Blog # 733