5. 90/10 days
Paul Desmond of Lowry's Reports (
When a 90% upside day shows itself, that suggested institutional buyers are coming back into the market.
This week has seen three 90% downside days, reflecting massive liquidations, and Friday is likely to be the fourth. They can only continue for so long before investors run out of shares to sell.As noted above, scaling into long positions is the smart approach. We would become more aggressive buyers after the first 90% upside day. This has historically created a good entry for a one- to three- to six-month holding period. 6. Percentage S&P 500 over 200-Day MA In the past, I have discussed the percentage of stocks over there 200-day moving average, on either the NYSE or the S&P 500. This is yet another quantitative method for determining when a move has simply gone too far in one direction.
|Percentage of S&P 500 Stocks Over Their 200-day Moving Averages|
|Click here for larger image.|