In general, I have found that my best short-term trades have been in the direction of the Cumulative NYSE TICK Line (blue line; chart above), but executed on contratrend bounces/dips in TICK. Since we tested the 1000 level in the S&P futures (pink line), intraday sentiment has been consistently bearish, with more NYSE stocks trading on downticks than upticks. We've taken out the October lows in the Cumulative TICK Line, which confirms the new lows we've been making in the advance/decline line for common stocks within the NYSE universe. It is difficult to see signs of bottoming in these indicators; thus far, weakness has led to further weakness, with oversold markets becoming yet more oversold and selling pervading all sectors.
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