NASDAQ: Extreme market internal and sentiment degradation..
I created this indicator to combine several market internal and sentiment indicators. The readings seen currently are below the March 2020 Covid sell-off readings and approaching what we saw in Dec 2019, which was a pretty bad month for that year as some of you might remember. This indicator can act as both a warning and as a 'get ready to buy' indicator. Generally, it will identify when internals are degrading--when readings become more extreme, the market usually sees violent moves. However shortly after that (about 3 days to a week), we usually see a strong, v-shape, counter move.
In short: We are at a ST/IT bottom or bottoming - if last week's violent down moves in the Nasdaq was not the bottom, the next day or two will likely see more violent downside moves to cause bull capitulation and a after that, a v-shape counter move.
In short: We are at a ST/IT bottom or bottoming - if last week's violent down moves in the Nasdaq was not the bottom, the next day or two will likely see more violent downside moves to cause bull capitulation and a after that, a v-shape counter move.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.