This is a special edition of The Market Breadth which follows a detailed look at expanding fear in financial markets. I am using video to quickly share my observations on important technical developments across the stock market. A “bullish engulfing” pattern has created a strong potential for bottoms across stocks and indices.
After defining the bullish implications of a bullish engulfing pattern, I quickly review the case for bottoming in the major indices (S&P 500, NASDQ, IWM) and in market breadth (#AT50). I conclude with a rapid review of promising individual stocks that printed bullish engulfing bottoms: ADI, AEIS, AMAT, AME, ASX, AVT, BC, BHE, BWA, CAT, CRUS, DIOD, ESI, FORM, IE, LSCC, MOD, ON, Q, RRX, TER, TT.
Note well that the volatility index (VIX) remains in an uptrend despite a sharp and bullish fade from intraday highs.
Be careful out there!