Here are some interesting indicators over the past 15 years, using a one week interval.
On the chart I've used S5FI which tells us the number of stocks trading above their 50 day moving average (orange line). On it's own I might assume this could go either way. But then you look over at the indicator below, Overbought/Oversold and you'll see we'll likely have 2-3 more down weeks minimum. When used together S5FI and the overbought indicators are extremely accurate in telling me the depth of the sell-off. Below that, is the MACD or Moving average convergence/divergence and here it tells me we're just getting started on the sell-off. The RSI is trending down which strengthens a sell-off. The Fear & Greed indicator which is the last indicator tells me that this correction has a ways to go before fear signals the end of the sell-off.
As with anything, be smart, manage risk, use hard tight stops and don't expect the market to ever do what we want it to.
Cheers!
On the chart I've used S5FI which tells us the number of stocks trading above their 50 day moving average (orange line). On it's own I might assume this could go either way. But then you look over at the indicator below, Overbought/Oversold and you'll see we'll likely have 2-3 more down weeks minimum. When used together S5FI and the overbought indicators are extremely accurate in telling me the depth of the sell-off. Below that, is the MACD or Moving average convergence/divergence and here it tells me we're just getting started on the sell-off. The RSI is trending down which strengthens a sell-off. The Fear & Greed indicator which is the last indicator tells me that this correction has a ways to go before fear signals the end of the sell-off.
As with anything, be smart, manage risk, use hard tight stops and don't expect the market to ever do what we want it to.
Cheers!