More evidence that a bottom is forming in the SPX. Above is the weekly “National Association of Active Investment Manager” (NAAMI) chart. When the NAAMI’s lower Bollinger® bands are touched (noted with a “0” or lower reading; bottom window) that means that the market has been near an intermediate term low.
The current reading is -.01 and at bullish levels.
Panic readings in the tick and TRIN may develop late this week or early next week to potentially set up the next bullish signal. Intermediate term bullish signals are present. In a neutral position for now.
This is the week before options expiration week where whipsaws are common. The top window in the chart above is the 10 day average of the TRIN. Readings near .90 and lower can produce short term highs in the market and today’s reading came in at .90. If the market does rally when a 10 day TRIN .90, the rally is usually weak and short lived. Two day TRINs with a reading of .62 below .75 are bearish.
An intermediate term low appears to be forming here, but the bottom process incomplete. Next week’s options expirations should see a move up. We are looking for a bullish setup not far from current levels.
We should see movement in GDX soon as the Inflation/Deflation ratio Bollinger® Bands are pinching. Yesterday we said: