07 Jan Stock Market Indicators – January 7th, 2016

Here are the latest readings from my stock market indicators.  I notice I get a lot more hits looking for my indicators when the markets are down.  Potentially to find out if I told people to sell, or more likely, if I’m telling you it’s almost over.

Well it is almost over, but I won’t give the all clear signal yet.

My composite indicator is reaching levels not reached since 2011 and since the decline in August 2015.

Long term remains slightly oversold.  Still not a fantastic entry point from a long term perspective.

Medium term is oversold.  Not extremely oversold, but this is an area where bottoms can be found.  We also need to watch if it passes its most recent bottom for a sign of extreme weakness.

Short term is oversold, but again, nothing extreme yet.  Yes, even after six days of declines on the headline indexes.  I think this is because a lot of stocks were already showing weakness before it ever “showed” up in the indexes.  It’s just now showing up – that’s normal.  The indexes always succumb last in a broad based decline.  Additionally, the past two days (today not included) there was action bidding up stocks showing signs that people haven’t fully capitulated selling everything and the kitchen sink.

Best of luck to you.  At this point, I hope you’re short from a few weeks ago.  But I wouldn’t be opening new positions short or long at this point.