A tradable bottome for the short-term

 

 

NYSE 90% Volume Downside

This indicator of panic selling occurs when 90% or more of the shares traded on the New York Stock Exchange are trading lower versus higher on a given day.

This indicator is a sign that emotionally driven panic selling has set in.

Here is a chart showing the percentage of up versus down traded volume on the NYSE. We have drawn a red line at this level.

This is one of the key signs we can look for to make some trades. Please note that this does NOT mean the market has bottomed. Instead, it signals an opportunity for the market to trade higher between +5% and +10%. This can be seen as an opportunity to exit losing positions. It also can be seen as an opportunity to take profits on anything you buy once you see the bottom. VIX Over 35 Another common factor signaling tradeable levels includes the “VIX” or “Chicago Board Options Exchange (CBOE) Volatility Index trading over 35. We have drawn a red line at this level on the chart below.    On the chart, you can see we last reached this level in August 2024. That set up both a tradeable bottom and a sustainable recovery to new highs.  Please note, it doesn't have to be EXACTLY at the 35 level. Back in 2022, it got close several times, and those created tradeable – and profitable – opportunities. Again, these are just two signs among many to look out for as we navigate these choppy market waters. E. Abeyta