📈 Market Bottomed?

These are the signs.

Market Signs

There are two signs that I want to go through that to me are bullish for the market and not indicative of a market that is about to crash.

These are indicators that I use to spot market bottoms and understand whether there is a greater probability of rolling over or holding and lifting.

Bullish Signals

The first thing to look at is the Ichimoku Cloud.

You can see a number of bullish signals here.

First, that we are above both the conversion and base lines. Second, that the S&P 500 is now lifting above the cloud. And finally, that we are just beginning to see a bullish cross in the cloud from red to green.

These are all great signs for the market. I would keep an eye on the Ichimoku Cloud going forward to inform your opinion on the market.

The next sign to look as is the percent of stocks above their 5, 20, 50, and 200 day moving averages.

I marked off three places in the chart: March 2023, October 2023, and now.

You can see that in all three of those dates we are in the same position in terms of percent of stocks above their moving averages.

And each of the last two times, it marked a bottom in the market. This tells us that we may see the same thing again this time.

For more details on what I am seeing in the market and what stocks I am focusing on for the end of the week, watch this video: