I agree with your assessment, Frenchee. I was a little early since I thought the weakness was over back in late August. The S&P 500 dropped another 3% after my previous call. Today, there was a nearly 4 standard deviation improvement in new-high/new-low spread. That’s a solid bullish signal. In addition, my New-high/New-low percentages are in a zone that has previously occurred near bottoms. That’s a different indicator that looks at the percentage of new-high vs new-lows on a moving average basis. If that indicator reverses, I think we can say goodbye to this downturn. There are a few other bottom signs, too, but none screaming a bottom.
