At yesterday’s close, Capitulative Breadth hit 7, so into the 7-10 zone that historically brought about a bottom.
Nymo is into the extreme oversold zone, at -100, and we saw a large daily volume candle yesterday, both signalling a bottom.
Source: Cobra / Stockcharts
This morning in Europe pre markets open, the SP500 and Nasdaq have hit the lower channel lines shown here in Alphahorn’s charts:
If we don’t bounce today then I suspect we will crash, make a cycle inversion into this weekend’s new moon, and then rally on Monday, but my expectation is rather that we print a daily hammer candle today, from this out-of-hours (for Europe and US) selling, due to the indicators above, and shared yesterday and the day before. I have added to Hang Seng longs this morning, and will buy more pro-risk if we fall further today or even crash. I maintain these are golden opportunities for a significant bounce as we print one oversold or overbearish extreme after another.
On the macro front yesterday, US leading indicators came in at -0.1, but Korea a woeful -1.5. If LIs turn down en masse then the picture changes, so let’s see. US economic data also disappointed yesterday and with Euro CDSs continuing to rise, global government and central bank intervention draws closer, both out of necessity and likelihood.