Stock Market Technical Indicators & Analysis
With the GMI and GMI2 at zero, the T2108 is at 13%. In prior extreme declines T2108 has bottomed at <1% (1987) and around 1%. (08) But as this monthly chart shows, declines more often bottom anywhere below 20%. My biggest concern is that investor sentiment polls are not very bearish and pundits are still looking to buy bargains. I remain in cash in my trading accounts.
I would be very interested in hearing whether my posts have helped you weather this decline.
All of my indicators are negative. As I define the trend, the QQQ is now in a short term down-trend. I am in cash or short. T2108 is at 26%, not oversold enough to suggest a bottom.
The QQQ short term up-trend will end if the index closes below 57.54 again on Wednesday. The T2108 is at 24%, not yet in extreme oversold territory where most large declines end. I am largely in cash in my trading accounts with a small short position. My university pension money is still in the growth mutual fund, primarily because I do not want to be penalized for market timing. If I could easily get out, I would reduce my positions.