Major Market Swing Signal (End of Day) Friday 5-13-22

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36% of the Dow Jones is on an Upswing

47% of the S&P 100 is on an Upswing

70% of the Nasdaq 100 is on an Upswing

60% of all Three Indexes Top Holdings is on an Upswing

Two of the above categories have now turned bullish but most of the stocks inside them are only on the 1st day of a new upswing as of Friday, we have to see if the Swing continues for a few days before we can trust it. Especially when our indicators have not signaled to start buying yet

The major indexes are still selling off and our indicators have not given us the all-clear to start buying yet

We still believe that the market is starting to bottom and will go on a rally soon

The Market Breadth is still at extremely low levels. They are at levels that could produce a bounce in the market. The bounce could just be temporary or it could lead to something more

NOW only 16% of the USA market is above its 200 Day Moving Average and only 14% of the Nasdaq is above its 200 Day Moving Average. The Breadth has only been lower than this twice in the last 10 years

Also on the weekly charts, the indexes are below their 100 Week and approaching their 200 Week moving averages.

The Indexes only break these weekly moving averages every few years, and they don't normally stay below them long (a few weeks at most) before bouncing and going back up

We have to be on the lookout for the market to bottom and move upward, even if it's just a relief rally and not the start of a new bull run. The charts will tell us

The market is still in CORRECTION and we have to wait for a Follow-Through Day to give us the green light

The BEARS are in control for now

Thank You

BTA