Stock Sell-Off Continues Or Market Bottoming? Market Breadth Shows Hint Inside

Two days ago, I came across a thread in a forum discussing about the current earnings announcement for various “hot growth stocks” on the growth potential, growing revenue despite no earnings yet, various ratio backed by the financial statements etc…

Most of them have been “investing” since the top in November 2021 (some invested even earlier) and have been scaling in since then because that will lower their average cost.

Yet, there are still lots of them asking “what to do as they bought right at the peak before the correction based on the growth prospects”, hoping the stocks can reverse and create a new high based on the coming earnings.

I am not in a position to comment from “investing” aspect, but when the stock market finished the distribution phase and is marking down, fundamentals and valuation generally get thrown out the window. Earnings are likely to act as catalyst for a weak rally or to tank further in a downtrend.

Having said that, the market breadth and indices are way oversold, pending a relieve rally despite no stopping volume in sight yet…There is no edge to long and increasing risk to short.

If you would like to know about timing the market, you might want to check out the video below where you will find out:

• How market breadth behaves during market bottom
• Using market breadth to derive when current market…