The index could bounce all the way back to the 10 week (purple dotted) or 30 week average (solid red) and still be in a Stage 4 down-trend. The 30 week needs to curve up for me to think the down-trend is ending.
Blog post: T2108=10%, almost there; Waiting patiently for a bottom while holding cash.
T2108 measures the percentage of NYSE stocks that closed above their simple 40 day moving averages. It is computed each day on TC2000. I would like to see T2108 register below 5% for a real potential bottom to be near. I am content to wait on the sidelines. I exited the market so much higher that I can wait for a bottom to be in before I start to wade in. I do not have to get in at the bottom. No one knows a bottom is in until after it is.
