If markets were to close right now, then breadth indicators would give “Extremely Oversold” signals and then you would expect some kind of bounce starting sometime Thursday. However, we’ve seen breadth indicators give false signals recently and I posted that this was probably going to happen again and again over the next few months.
So, if something like $NYUPV should close below 80 today, then that would be an extreme oversold reading, and if markets don’t bounce tomorrow and resume the recent rally leg, then that’s a fail. Today is going to be important but Thursday will be more so, if you catch my drift.
On a day like today, watching the Intra-Day PC/Ratio will show you if market participants have gotten overly bearish with readings in the 1.40’s or higher. So far not really showing that.