George Tkaczuk Analysis: Possible Equity Market Bottom?

George Tkaczuk talks about the ongoing correction, noting some signals which may indicate a near-term bottom
Publish date:

In today's Traders Exclusive, George Tkaczuk notes that last Wednesday's trading action may have indicated a short term bottom for equities, as there was a sharp drop lower and then a reversal on high volume which has so far demonstrated follow-through to the upside. The CBOE Put/Call ratio concurrently indicated that sentiment hit extremes. Additionally, the VIX inverted, and treasury yields crashed, all signs that capitulation may have set in. We are now on watch for a high volume follow-through day to confirm institutional support in the market. As we observe the market develop, we are keeping a watchlist of strong names with a focus on stocks in the medical sector, specifically within biotech, drugs, and hospitals, and additionally trucking and rails also appear constructive. Within retail, restaurants appear to be the strongest. Seasonally, we are entering the strongest period of the year for equities, which should provide some tailwinds in the near term.