Market Recap for Wednesday, October 25, 2023


SwingTradeBot about 2 months ago

What are your thoughts on 'today's (2023-10-25) market action?

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TraderMike about 2 months ago

Seeing so much red in the trend table reminds me of what I wrote back on July 31st, when it wa solid green:

Typically the trend table being all green or all red is a sign of at least a short term extreme. 
But we're not quite solid red yet, so I'm not enticed to go bottom fishing just yet. 

The other thing that stands out to me is that the percentage of stocks above their 50-day moving average is a hair off of its 52-week low.  It's at 19.98, which indicates an oversold market... but I've seen it reach single digits in really ugly times, which often leads to a capitulation bottom.  

So we're at an interesting juncture.  If I had to choose a side right here I'd be a bear... but I'd be pretty quick to cover my short positions on a flush lower.  The trend follower in me has a really hard time going long when (almost all) the indices are under all the key moving averages.  

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