Key moving averages and the high low index of the S&P 500 is signaling patience for those of us who are sitting back in cash.
The S&P 500 High Low Index is in a free fall which suggests that it’s too early to go long a stock for a V bottom bounce:
The NYSE percent of stocks above the 200 day moving average is also still in a free fall:
The NYSE percent of stocks above the 50 day moving average doesn’t look much better:
At least the NYSE percent of stock above the 50 day moving average is showing signs of consolidation rather than a free fall.
Ideally you should be in cash right now and looking for a swing long entry. Do not be quick with the buy button. You want further evidence of consolidation or a basing pattern before taking that swing long entry.