Tuesday, August 9, 2011

Absolute Breadth Index Warns Of A Bottom

Extremes in the Absolute Breadth indicator do a great job of nailing bottoms.  It has now reached the extreme level for a bottom and a turn down would indicate a bottom is in place, but just like in October and November 2008, lower lows are possible after a retracement rally.  Even so, this is strong indication that a meaningful bottom may not be that far away.


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