I wanted to send out an early addition for your perusal. The Zweig finally hit oversold. That in its own is not a buy signal, but the plunge that got us here and the DPI hitting below 20 have us on bounce alert. The exciting thing is is that a Zweig move above 40 starts the Zweig Thrust counter.
Note that coming out of the May correction, the actual low in price was hit on a higher Zweig reading. That is a great buy signal. So while we are not sure the lows are in, we do think there are higher prices ahead before a retest from here. If you can’t handle getting stopped out or 10 point type stops, you need to wait for some confirmation.
Here is our Zweig, finally oversold again, 1st time since June:
Nice move down on the CVI:
Our 40 DPI sits below 20, another benchmark we were looking for:
NHs/HLs stretched just about as far as they can:
Don’t need to share the trenders, but the distance between the 15DMA and the index is stretched: