Monday's TrendFlex Score closed at 2.36, nearing heights previously associated with short-term bottoms in the equity markets. Despite the technical carnage (which is clearly self-reinforcing as chart-followers and technical trading algorithms all follow the same tune - have we heard enough about that death cross yet?), stocks with compelling valuations are beginning to surface. We prefer to see a reading in the 2.50 range to add to longs, but we may dabble a bit at this juncture.
See the chart below, where peaks in the TrendFlex Score coincide with trend shifts to the upside.
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