As I analyze the markets, we are still in the deep pits.
Here is some of the stuff that I use for spotting reversals
Watch the weekly RSI (14 week setting). You can see from this chart that Dow Jones was showing up above 70 on Weekly RSI right from end of April. Around April 26, it went below 70 giving us the sell signal.
Now we are waiting for signal to go below 30 and then rise up from there. This should be watched along with RSI (14 day setting). Right now we are hovering over 30.62 on daily and 30.28 on weekly. Hopefully in next couple days, daily will dip below 30 and then go back down and then rise up again by end of the week. At that point in time, the Daily and weekly should be below 30 and trying to bounce back. That should indicate us a buy signal.
We are looking for that 5% to 20% bounce. So remain ready, keep the powder dry.
$INDU - Weekly Candlesticks: "
via StockCharts.com
Will Post tonight or tomorrow HOW to FIND and SPOT REVERSAL LEADERS
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