Blog Post: Market stats are similar to what occurred at June low: 1,374 new yearly US lows vs. 1,394 at June low, 81 Nasdaq 100 stocks with oversold daily 10.4 stochastics vs 85; T2108 = 12 now vs 11; P/C ratio= 1.08 vs. 1.17, but reached a more extreme 1.27 days before June bottom, see charts for trend
This weekly 10:30 chart provides another picture of the trend. QQQ is leading the two averages lower.
Finally, my favorite chart is a weekly chart displaying the 4,10, and 30 week averages. QQQ kissed the 4 wk avg. last week and continued down. Note how declines tend to ride the declining 4wk average (red dotted) down. When a real market turn comes, QQQ will close above the 4wk then the 10 wk and then the 30 wk averages which will then begin to turn up. Until that happens, the down-trend is not over. Trend followers react after the desired signals appear, not before.
When the GMI=0, it is probably best to go short or go fishing….