Ever since the S&P 500 fell into bear market territory — defined as 20% drop from a recent all-time high — earlier this week, everyone’s been asking me where the bottom is.
Well, let me start with this…
There are several factors pointing to a market bottom, but when I’m looking for any kind of extreme move up or down, what I tend to look for most is divergence.
If you don’t know already what that means, divergence is when the price of a stock is moving contrary to a technical indicator or other data.
When I see more and more assets start to diverge or get out of whack, it’s a real big turning point…
6 Factors That Point to a Market Bottom Right Now
I’m seeing a ton of factors that point to a market bottom right now, but the biggest thing is some of the weakest assets are starting to turn around.
Now, there’s no question that the three main indices, the S&P 500, Nasdaq and Dow, broke lower lows on Monday, and again later this week when everything was down on Thursday…
But take a look at this chart of the Russell 2000…
The iShares Russell 2000 ETF (NYSEArca: IWM), an ETF that tracks small-cap stocks, has been lagging behind all of the other indices I mentioned above. However, it didn’t break its lowest low on Monday with the rest.
In fact, the IWM didn’t break its lowest low until Tuesday, and then again on Thursday.
This tells us that the market bottom is much closer than everyone thinks…
But that’s just the first factor telling me the broader market isn’t going to fall apart at this point in time…
Check out my short video at the top of the page to see all of the factors that point to a market bottom right now.
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P.S. I’ve stumbled across a brand new way to trade stocks…
I’m talking about a strategy that doesn’t require any sort of technical indicators or fundamental analysis…
And recently, I uncovered proof that what’s being taught on Wall Street about these little-known patterns is completely false!
So let me show you how crooked and rigged the game is against us as stock traders, even when fear levels in the market are at all-time highs.
