Watch 30 Minute PC Ratio for Possible Buy SignalMy previous post noted the SPX has over the last several months a very reliable 42 trading day cycle of bottoms. The next cycle bottom is due on 2/4/20. Periodic cycles can have leeway, in this case a leeway of two trading days is acceptable, so its possible an SPX bottom could be in place on 1/31/20. If not, watch the 30 minute P/C ratio - chart symbol PC.
Investors Business Daily uses the PC level of 1.15 as an alert for possible bottoms. The two largest SPX corrections on the chart illustrate that when PC goes above 1.15 bottoms can form.
On 1/31/20 the RSI on the PC Ratio hit its highest level since the tiny 12/3/19 bottom which is evidence that an SPX bottom could already be in place. However the PC ratio could continue to rise above 1.15 with the RSI diverging against the high it made on 1/31/20.
Be on alert February 3rd to the 6th, if the SPX goes below its low made on 1/31/20 with a PC ratio above 1.15 it could be a fantastic opportunity to go long stocks.
Mark
