With the vast majority of the breadth gauges that I follow now deep in oversold territory, it may be safe to say that the worst is over for now. We could now witness another rally leg lasting anywhere from five to ten days and if this should actually occur then you can expect that the rally will be sold, as have all the other failed rally attempts since the 8/8 lows.
FDX down over 8% today after they lowered expectations, and this didn’t help the $TRAN, which closed at a new low for the year and has been a bear market for close to two months. $CYC also closed and a new yearly low and like the $TRAN has been in its own bear market.
I went through a long list of indexes and ETF’s this evening and the only one that I found that didn’t get absolutely slaughtered today was KRE. Many of the small banks in KRE are also in the $RUT, which most likely explains why IWM was down only 2.79% while most everything was down over 3%. Not much of a silver lining, but, hey, I’m trying.
The weekly charts, especially of the $SPX, are proving to be the only way to play this market now. With a recession just a few exits away, I don’t expect the weekly $SPX chart to show much improvement for quite some time. In fact, the 52MA that I use on the weekly charts is now falling for the first time since this decline began.