Some extreme technical readings are at play now that could signal a market bottom, or at least a strong bounce higher over the next few days.
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Bottom Line: These two indicators along with others that I follow have been reliable in the past to help determine market bottom readings, or at least presents a lower risk opportunity to buy stocks. Can the market continue to fall, by all means yes, but if you are looking to add a little market exposure here, the risks are less than when the market was at an all time high in September. Thank you for reading.
Contact: 586-431-8000
The fear gauge, also known as the VIX Index has spiked to levels not seen since 2012. The VIX can be used as a contrarian indicator. In other words, when many are fearful (buying put protection) a buying opportunity could present itself, which is the contrarian view.
The New Highs / New Lows indicator is also at extreme levels that suggest, the risk of entering the market is less than buying when the indicator is at extreme high levels.
Bottom Line: These two indicators along with others that I follow have been reliable in the past to help determine market bottom readings, or at least presents a lower risk opportunity to buy stocks. Can the market continue to fall, by all means yes, but if you are looking to add a little market exposure here, the risks are less than when the market was at an all time high in September. Thank you for reading.
Contact: 586-431-8000
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