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Road Kill

OK, so it looks like our "dead cat" bounce has turned into road kill. But the technicals don't get much lower than they are right now, so looking over the past year here's some interesting numbers.

During the past year we've had 7 periods where the S&P technicals remained above 80 percent. The average length of those periods was for 15 straight business days. The shortest was 8 days, twice, and the longest was for 23 days.

Now compare that to when the technicals were under 20 percent. There were 12 periods, with the average length being 5 business days. The shortest was 2 days, three times and the longest was 7 days.

Now one can read many things into these numbers, but basically the market remains under 20% for very short period of times compared to remaining at the top. Naturally one wants to buy at the bottom when things are the scariest and hold into the middle time frame at the top before selling, when everything is looking rosy.

Currently we're in the fifth day of being below 20%. Therefore history tells us that we should get our bounce before long.

This is just one of those scary buying times...



Disclosure: Long DIG SLV VXX Short QQQQ XRT (Covered my last XLE short today)