Here are the 50-Leader stats:
Above 10-Day SMA - 10%
Above 50-Day SMA - 38%
Above 50-Day SMA - 92%
Stocks from the 50 Leaders making new 20-Day Lows - 13
Stocks from the 50 Leaders making new 20-Day Highs - 2.
(Yep - Telstra was one of them - the other was Wesfarmers. Both Defensive Stocks.)
Those numbers are probably low enough for a bounce to occur.
For how long is another question.
The banks were pummelled today and the candle stick charts for today look like big black bombs. That probably means a pull-up tomorrow - but the technical damage looks to have been done. This looks like Wave A of an ABC pullback for the banks.
I didn't quantify it as I went through - but subjectively I noticed a lot of completed double tops. And that also probably means a test of the valley between the tops. So a move up is on the cards. If the test of the valley results in respect - then we can look at another few days or a couple of weeks (or three or four or more) of downward movement. But I'll just go with the flow.
The number of new lows also suggests a bounce. The Turtle Traders would be going short those stocks. But only about 30% of those play out (Linda Bradford Raschke, "Street Smarts").
So the courageous should be piling in - probably at the end of today.
I think I'll go to the park and play slippery-slides with my grand-daughter for a couple of days and then see how it goes.
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