Thread by @jonathanharrier

#Capitulation is not well understood. It means massive selling, where the bulk of likely sellers give up, en masse.
It does not usually mean "the bottom".
It does not require a $VIX jump or spiking put/call ratio.
Mid-June has many examples. Here are some...
(Thread 👇)

Capitulation example #1:
Spike in 52-wk lows
$SPX new lows hit 42% on June 16, closed at 39%. Only 16 lower readings since 1985.

Capitulation example #2:
Massive $NYA NYSE Composite down volume
98.5% June 13
96.3% June 16

Capitulation example #3:
49% of $SPX stocks had declined 5+ consecutive days as of June 14. Only a couple other higher readings back to 1985.

Capitulation example #4:
52-wk High-Low for $SPX stocks was -39% on June 16

Capitulation example #5:
7% of $NDX $QQQ stocks were above their respective 200-day MA on June 16.

Capitulation example #6:
$SPX $SPY 5-day Rate of Change < -10%

Capitulation example #7:
You can see capitulation visually via candlestick charting. Multiple massive bearish candles with gaps in between means no support. The waterfall decline is unrelenting selling. $SPX $SPY lost 12% in a week.

This is not an exhaustive list. There are many similar examples across indices. Feel free to share yours...