No chart, but I’ll offer up some readings that I’m looking at most closely.
\nI use what are known as unbounded stochastics (“US” for short here). They can travel below zero and above 100.
\nI can find momentum extremes and turn setups more easily with them, compared with standard stochastics.
\nI also like to monitor SMH, as it often signals ahead of the broader indices.
\nThe weekly US for smh has spiked below zero three times in 18mos.
\nThe ebola scare in Oct 14, the late Aug swoon, and now.
\nHitting -88, -97 and now -110 for these US’s.
\n(The US also dipped to -22 in July this summer midway into the Aug bottom. But no spike low)<\/p>\n
In both prior cases, we took on lower lows in price for SMH the next week, but these then formed the bottom.
\nIn other words the US extremes in one week warned of impending reversals the following week.
\nSo any bounce on Monday — if we get one — will likely be sold but the next bottom should stick.
\nI’m quite mindful that the bigger picture is far more threatening for bulls at this juncture and that this bottom could ultimately fail in the weeks ahead after a reflex rally.<\/p>\n","protected":false},"excerpt":{"rendered":"
No chart, but I’ll offer up some readings that I’m looking at most closely. I use what are known as unbounded stochastics (“US” for short here). They can travel below zero and above 100. I can find momentum extremes and … Continue reading