The overall market is confirming its weekly strong decline status, the worst of all possible intermediate trends phase. There is not the smallest hint of an evolution into weekly medium or weakening decline stages. Long term investors are still advised to sit in cash on the sidelines.
This week may prove pivotal in determining if the worst is behind or ahead of us. The weekly stages score closed at the same level than the low of three weeks ago. A lower low of the score on next Friday’s close would indicate intensifying long term market weakness. A bounce in the score would hint that some stabilization and bottoming process may be underway.
On the daily timeframe, the stages structure is quietly improving with a steady and growing number of stocks piling into early and mid-accumulation stages. This happened despite the repetitive heavy selloffs seen in recent weeks. Only 23.52% of stocks are still in daily strong decline stage compared to a peak of 58.28% on August 10.
The daily stages score remains in negative territory but with spectacular resilience, well above the 20-day moving average. The strong positive divergence with market price may encourage aggressive short term swing traders to buy into weakness and seize long entry opportunities in leading ETFs and stocks.
This is all I can say objectively today and I’m sure my subjective opinions are of no interest to anyone.
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