Breadth remains weak, but we want that final wow! factor. We want to see things that we have not seen before to trigger this turn-around. It isn’t happening, it is a very controlled exodus right now.
If you recall, we want that Zweig breadth indicator to move down below the 40 level to get oversold and to signal the beginning of exhaustion. This will be the call for the bulls to gather and to begin a climb back up to new highs. This market won’t do that final sell off. We have tried 4x now to break this 44 area which three times previously has been the exhaustion point for a rally back up.
Our CVI is on the edge:
40 DPI showing a precarious hold from yesterday:
New Highs / New Lows bounce back above the 40 line:
Trenders remain bearish: