Jeff deGraaf, CMT, was featured in MarketWatch late Wednesday with a wary take on this week’s market performance in light of its previous drawdown.
“We’d classify the rebound as ‘uninspiring’ where TRIN was a useless .61 and breadth a mediocre 2.2:1,” deGraff is quoted as saying, as reporter Mark DeCambre explains the basics of Dick Arm’s TRIN indicator.
“Nearly all of the S&P 500’s 11 sectors are on track for their worst monthly declines since 2008, according to Dow Jones Data Group,” wrote DeCambre. The data is pictured in the table above.
“We’ve seen enough deterioration in our trend work to raise the bar on what’s needed to reach escape velocity and shift the burden back to the bears,” said deGraaf. “These are bounces in terrible trends, and are high probability failures in the near-term, but whether days or weeks is hard to say.”
Read the full article here: Why a 240-point rally for the Dow and stock-market rebound is ‘uninspiring.’