Breadth is now firmly in bounce territory–Think Up $study

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.

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We see that the CVI has been stretched by the bears for about as far as it can go.image

Ditto for the 40 DPI

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Our NH/NL is also in oversold extreme

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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.

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and

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