His call for this week:
At down 8.5%, the S&P 500 just had its worst January in history. That swoon flashed cautionary signals from not only the January Barometer (so goes January, so goes the year), but the December Low Indicator as well. Moreover, in the past three weeks there have been three 90% Downside Days (points lost versus points gained AND downside volume versus upside volume were skewed more than 90% to the downside), suggesting that the “sellers” have not yet been exhausted. The result left most of the market averages we follow below their respective 10-, 30-, and 50-day moving averages, indicating a full downside retest of the November “lows” is likely in the works. Whether that retest will be successful remains to be seen, but we are hopeful because our proprietary oversold indicator is just about as oversold as it can get. In the interim we are cautiously sitting and waiting until the stock market “speaks.”
Consider as a probablity...
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