We are comfortable now for those early knife artists to say that all the breadth indicators are stretched far enough to try an RTM trade (Return to Mean). This is not a call on the bottom in place, it is a counter trend call, so upside could be limited.
Our Zweig is 2 days now in oversold.
We see that the CVI has been stretched by the bears for about as far as it can go.
Ditto for the 40 DPI
Our NH/NL is also in oversold extreme
Our trenders are still bearish, and “Don't trust rallies” is the mantra, we think with the current readings though a multi-day bounce is in the cards this week.
and
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