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Indicator Review for July 7th

Posted on July 07, 2008

Last week's indicator review noted that we were oversold, but that indicators were weakening and it was dangerous to try to catch the falling knives. That turned out to be pretty good advice, as we became even more oversold (top chart)--reaching levels seen at recent intermediate-term market bottoms--but continued to see an expansion of stocks making new lows (middle chart). Buying sentiment, as measured by the cumulative TICK (bottom chart) remains nowhere to be seen, as bounces have led to reversals. In short, the weak market has become weaker. Traders looking for signs of capitulation i...

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bear market , lows , markets , new lows , oversold , sp , trading