Breath gave the signal for correction
The percentage of stocks of the
SPX
got above 80% last week. For the last 4 years, this has been a very good signal for excess and a correction is due.
Use this to find strength. The stocks that manage to stay above its 50-day MA may be the ones that lead the next move. At the moment oil, gas and some solar stocks dominate my watchlist. And I am a Bottom-Up trader.
Also, according to this breath indicator, the bottom already happened. Just like in 2020,
S5FI
got below 2%. As it shows, it signaled the bottom.
SPX
got above 80% last week. For the last 4 years, this has been a very good signal for excess and a correction is due. Use this to find strength. The stocks that manage to stay above its 50-day MA may be the ones that lead the next move. At the moment oil, gas and some solar stocks dominate my watchlist. And I am a Bottom-Up trader.
Also, according to this breath indicator, the bottom already happened. Just like in 2020,
S5FI
got below 2%. As it shows, it signaled the bottom.
Comment:
Retesting levels, double bottom in SPX and S5FI?
