We can call a correction bottom when we have a retest. We
did bounce off the 50-dMA so we may have seen the bottom. In situations like
this one, when we see a bounce and improving internals (but no retest), we are
left with no way to make a strong call, buy or sell. Currently, breadth is
above 50%, but that happens in the middle of corrections, too, so it is not a “correction-over”
signal.
If the 5-10-20 Timer system switches to “Buy”, I’ll call
the correction over. Now, given the doubt, it may be best to cover the short
position unless we see continued weakness during the day. Currently, the
markets are slipping so I am not ready to cover yet. It doesn’t seem likely that they will fall
into negative territory, but stranger things have happened.
Currently,
