XJO finished down today -1.77% after being up more than +0.9% after the opening. (What were they thinking of?). A rally in the afternoon carved more than 1% of the losses at 1.15 p.m. but that did little to save the XJO from a massive loss today.
So, the afternoon session did see some nibbling at the XJO by the bottom feeders.
Advances/Declines were nowhere near as bad as they have been in the past four days. A/D ratio today was 0.31% - a lot better than Tuesday's ratio of 0.13%, but a long way from the mid-09nt of 0.5.
Today saw extremes which haven't been seen for a long time. NewHighs-NewLows came in at -115, We haven't seen triple negative figures for NH-NL since the bear market of 2020.
Rate of Change Difference between Bonds and Stocks is also at levels we haven't seen since the bear market of 2020.
This graph compares the rate of change of stocks compared to bonds. Bonds are clearly out-distancing stocks in Rate of Change. That's not a lot of solace as Bonds are also in a down-trend - just nowhere near as severe as stocks.
All of this suggests we're getting close to a low. But until we see definite signs of a low - it's best to leave the bottom pickers to try to catch falling knives.
So far, the XJO is down more than -11% since its high on 5 January to the low of today. That's "officially" in correction.
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