However, while the data signals have intensified, they were suggesting a bounce through all last week as well, while the markets headed south. Therefore, we believe that some signs of demand overtaking supply on the charts are a requirement to embrace the data signals with greater confidence. Market cumulative breadth continued to erode as well with the advance/decline lines for the All Exchange, NYSE and Nasdaq negative and below their 50-day moving averages. The Open Insider Buy/Sell Ratio rose to 79.3%, staying neutral as well, as insiders continued their buying on weakness. Last week's AAII Bear/Bull Ratio (contrarian indicator) rose to 1.25 and remained mildly bullish.

Source: Washington Post September 06, 2022 21:16 UTC