The tone of the market sure did change over the last two weeks! The image below is from our Trend Analyzer screen of US indices as of the close two weeks ago on 1/17. Heading into that weekend, the major US averages were all at ‘Overbought’ or ‘Extreme Overbought’ levels, and while their Trend ratings were all positive, the Timing scores for nearly all of them was ‘Poor’.
Fast-forwarding to the present, it’s a completely different picture for the major US indices. Today, not a single one of the major US index ETFs headed into this weekend overbought at overbought levels, and a few of them are even oversold. Here’s the silver lining, though; since all of their Trend ratings are still positive, their timing scores all rank as ‘Good’. While not what we would classify as a ‘Perfect’ set up right now, for investors who have been waiting for a pullback, the window is starting to open. Start a two-week free trial to Bespoke Institutional for full access to our Trend Analyzer tool, so you can track the key trends of major indices and individual stocks.