Most breadth indicators went into extreme oversold mode today, but neither Zweig Breadth Thrust, 4wk New High/Low Ratio, $NYMO with Bollinger Bands, nor daily $NYSI are confirming. This is due in part or mostly to the tremendous volatility that we’ve been seeing lately. RSI’s on the 60min charts of SPY, IWM, DIA, and Q’s are sitting in the 40 area and in this market it is better, from a trading perspective, to wait for the RSI’s to drop to or below 30 as long as your time frame is short term.
Amazingly, no clear sell signal yet on the daily chart below. I can’t see the rising trend channel holding, but then what do I know?
Cash is king in markets such as these.