As of the close on Wednesday the Capitulative Breadth Indicator (CBI) was at 4.
With prices at the current levels as of 2pm Thursday the CBI is set to spike to 16.
This is an extremely oversold level. Ten and above has often led to market bounces. Not always immediately, though. It got up into the 40’s in July 2002 and October 2008.
For more on the CBI and what this all suggests you may want to check out the CBI posts.
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