Can major market tops & bottoms be identified with accuracy? Yes!
Data is presented showing that identifying “major” market bottoms is easier than any other change in market direction. Market tops can also be identified but a bit more difficult.
2/ Daily New Low readings were well above 1,000 with a peak of 2,901 on Friday, 10/10/08. The market was screaming exhaustion as the selling pressure of the past 18 months was hitting its max. All other readings were in extreme territory including the basic NH-NL differential...
3/ the 10d & 30d differentials and the % ratio. The extreme readings continued through the end of November 2008 when they final subsided in December but remained negative.