My Indicators Go to Zero–T2108= 10%; Flash Thursday was no glitch
The GMI and GMI-R are back to zero for the first time since March 9, 2009 at the re-test of the 2008 market lows. The Worden T2108 Indicator is now at 10% (rounded, really 9.7%). I have thought in the past that when this indicator is in single digits, I should have had the courage to go against the fear and go long a market index. I would suspect that we are so oversold we might get a bounce back. I do not think this is the time for me to add to my shorts. I will wait to see if the bounce back begins to fail. I think that this decline shows us that the “glitch” on flash Thursday was not a failure of the market mechanism. It showed how thin the demand for stocks was. The media and government pundits’ comments obscured the true meaning of that sudden steep decline.
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