Signs of panic in technology-heavy NASDAQ Composite Index often foreshadow tradable bottoms in equities. Statistically significant spikes in the TRIN, price relative to the trend, and pull/call help quantify and define it (chart 1). Once these signals have been generated, patient investors will wait for the emergence of positive divergences between price and energy before acting decisively (chart 2).
Chart 1: Nasdaq Composite and Quantifying Panic
Chart 2: Nasdaq Composite and Positive Divergences
-------------------------------------
Insights is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations.Thank you for your contribution
