I want to make something very clear.
Yes, this index CAN go lower. It has been lower before.
But the point im making is two fold:
1- The area I have selected is from the start of the bull market. 14 is the bull market low, therefore, as we are still in a bull market, this is peak bottom territory.
2- The index can go lower than 14. BUT, there is only so far down it can go. It can go down to 6(lowest), which is 8 points lower. However, it can go up to 98, which is 84 points higher.
The biggest problem I see with many of you and the way you operate is that you become obsessed with the fear based notion that if something has dropped, it’s never going to stop.
The idea is not to nail the bottom, the idea is to nail the bottom area.
To be successful here you must be able to detach from the emotional reaction of lowering prices.
A very low score of 14 on this index tells us, and shows us, that we are much closer to reversal than large drops.
But the vast majority of you will be very bearish at this area, and very bullish in the 80’s. Only to get reversed on at both ends.
But hey, most of you will never learn.
The comments on this tell us where we are.
