Bobby, I think that the tic readings might still be skewed a little, so far, at extremes this year. On both Jan 3rd and Jan 8th bottom we got reading of only --900. I think that a large number of minor stocks are still in the post tax season rebound from their December tax selling lows, and thus may not yet be hit. I am not sure how to read it, because the number of new lows (only about 1/3 of the Jan 3rd new lows) is surely not a major panic level either. Traditionally, when you are approaching a prior low and the new lows do not expand, it might very well be that a major bottom is being put in. If we consider the dates Dec 20th, January 3rd and today (or sometime in the next few days) as consecutive bottoms, the 52 weeks lows at respectively, 850, 450 and 171 so far on this decline, indicate that a goodly number of stocks have already put their lows in place. Maybe we can see the light at the end of the tunnel, after all.
Zeev |
