We got a day 4 follow through day this week. So far it hasn't failed. There were sentiment gauges that were showing investors were at similar levels of caution shown in 2008. There is a good chance this one will stick.
The Russell, the weakest on the way down, is now the leader off the bottom. It looks to me like it completed the final 5th wave in a zig zag discussed in previous reports. I like how the MACD is turning up. At the lows, the Russell was down 30%.
Leaders
Leadership is narrow.
LITE is still holding its pivot. I'm trying not to overthink it.
VIAV is still holding its pivot point and now its trendline breakout without a stop out. Again not trying to overthink it. I could see a handle starting some time next week. Could be a nice add if it forms properly.
Watchlist
There are other stocks like FB where I am trying to see if they right themselves after stop outs. Not a lot of setups I like right now. I am just focused on 3 favorite long trades - IWM, LITE, VIAV.
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