While going through some broad stock market indicators, I am seeing a lot of positive divergences out there which makes me like the odds of a bounce next week.
Firstly, I present to you the NYSE Advance-Decline Index. You can see that the index turned last week and is well off its lows but the market kept on falling further.
Similar scenario can be seen in the NASDAQ Advance-Decline Index.
Let's turn our attention to another market parameter now, the volume. The NYSE Advance-Decline volume also similarly picked up last week. Hence, another positive divergence.
Again, a similar picture is painted by the NASDAQ Advance-Decline volume.
All these positive divergences coupled with the fact that we have been down almost 10 days in a row now, makes me really like the odds on going long next week. What do you readers think?
Take care and good luck!