The following video provides technical analysis of the major stock indices & sectors including parallels to this comparable point in the previous (2007-2009) bear market.
The duration of the video is on the longer side. As always, the playback speed can be increased in the settings to reduce the duration of the video (1.25x, 1.5x, etc…). The main takeaways from this video are:
1) Despite yesterday’s seemingly impressive reversal & bullish engulfing candlesticks on the daily charts of QQQ & SPY, which most certainly may prove to be a significant bottom, should the market build on yesterday’s gain in the coming trading sessions, essentially it was simply a backtest of the recently broken key 269ish support on QQQ and so far today, an impulsive rejection off that backtest where the Nasdaq 100 closed yesterday.
2) Nearly all trend indicators, short to long-term, still remain on sell signals (bearish). Additionally, yesterday’s seemingly bullish reversal (6% recovery from low to high in QQQ) is typical of bear market price action although it certainly has the potential to mark a significant bottom, again, if & only if the market can remain above yesterday’s low & build on those gains today and/or into next week.
3) The analogs comparing the uncanny similarities between the price action & technicals in both the major stock indices as well as most of the 11 sectors in the S&P 500 both leading up to the previous (Oct 2007-March 2009) bear market top and subsequent price action over the next 10 months or so, including the potential (unconfirmed) divergences in place at this time as well as the comparable point back in 2008 and what to watch for going forward.