Breadth charts remain at extremes.

We wrote a piece this weekend about the T2108, our 40 DPI.  You might want to review that:

http://ttthedge.com/t2108-what-is-it-and-what-is-it-telling-us/

 

We are at extremes everywhere and this market will, it always has, snap back.  It never happens on your timing.  The question is, will the snap be a rally back to the highs or a bounce in a longer term bottoming pattern.  We won’t know that until it begins.  We will measure breadth and price action.  For now we are awaiting the snap with our ears plugged much like waiting for an over-inflated balloon to pop. It will happen sometime, who’d have thought that balloon could get so big!

 

This is what an over extended Zweig looks like.  Because of the downside extension, a Zweig breadth thrust from this crossing back above the 40 looks unlikely.  These type of readings usually fail, get oversold again and then bang! Off to the races.

 

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The CVI is not at extreme reading, but movement from top to bottom is unsustainable.  This indicator needs some relief.

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Our 40 DPI we wrote about this weekend is below that 20.  Extreme oversold.

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The NH/NL index is also below 20 extreme territory.

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Our boring trenders remain steadfastly bearish.

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As is the Cum 4WNH/NL indicator

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