GMI: 0; GMI-R: 0; 20th day of QQQQ down-trend; Worden T2108: 9%–bottom territory?
The GMI and GMI-R remain at zero. Fortunately, my account rose on Monday and I hope my readers were in cash or short, too. There were an amazing 1,066 new lows and 12 new highs in my universe of 4,000 stocks on Monday. This was the highest number of new lows since 1,453 on January 22nd. The Worden T2108 indicator is at 9%, an extreme low level for that indicator, typical of past market bottoms. Only the bottom in the 1987 crash had a much lower reading, less than 1%. This is not the time to make new short sales. It is very likely that the market is at a bottom, at least for now. Watch for a rise in the Dow on unusually high volume. Meanwhile, the safest course is to remain in cash on the sidelines until the GMI rises to at least 3.
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