FWIW, this morning Dick Arms, the inventor of the Arms Index and author of several TA books, wrote on RealMoney.com:
"It has been a little more than a week since the market sent us one of its most reliable, yet least-seen bullish signals. Only seven times in the past 32 years has the 10-day moving average of the Arms Index for the New York Stock Exchange moved over 1.50. (The Arms Index shows the relationship between the number of stocks that increase in price and those that decrease, and the volume associated with those stocks.)
In each case, it was a clear and timely signal that the market was ready to move higher. The occasions that it has given such a reading are at the bottom of a big decline in 1970, the bottom of the bear market in late 1974, the decline of 1980, the low just before the secular bull market lasting 17 years got started in 1982, the panic bottom in October 1987 and the big drop in 1997. In most cases, it was within a few days of the exact low."
There's more, but that's the gist. In his opinion, TA indicators are showing this area is a low.
WUWT
ps Don't argue with me 'cause I'm not sophisticated enough to venture an opinion one way or the other <gg>, I just thought some might find the info interesting/useful. If you don't, just ignore it. |
