Possible bottoming action and "possible" start of new uptrend.
Market "had" 12% correction in indexes from high to low.
Breadth on Primary indicator reached "extreme" readings below 200.When that happens you have to think of possible bottom and buy opportunity. Those kind of extremely bearish readings are rare phenomenon.
Since then in last few days there has been lot of improvement in breadth with back to back 300 plus days on 4%. Secondary indicator 34/13 has turned bullish.
Most beaten down sectors and bear market leaders like oil and commodities showing bottoming action and bounce from that action, which is another positive sign.
These are the top 10 performing sectors in last 21 day by momentum. All this point to possible bottoming action and "possible" start of new uptrend. All the bad news is priced in to them now.
New leadership is starting to emerge and it is showing up in Stockbee Double Trouble (DT) , Stockbee Modified Double Trouble ( MDT) and Stockbee Trend Intensity 65 scans. Universe of stocks that meet Absolute momentum criteria has started to expand , that is healthy sign.
Unless we see significant breadth deterioration , benefit of doubt is on bullish side.