Most of my own short term sentiment measures reached "buyable" levels on Friday, August 26, which day was the third sub 7.0 reading in the sentiment oscillator (2SO), which is a recurrent pattern at tradeable lows.
Several weekly indicators made their extreme readings a week to ten days earlier. This is counter-intuitive for many sentiment watchers, but there is often a "divergence" of sentiment in favor of the soon-to-be-new-trend for a week or two before the change in trend. Learning this the hard way and coming to watch both these and shorter indicators has been valuable in teaching me the virtue of patient watching instead of "being right too soon".
Several sentiment professionals, one in index ETF options, the other in stock index futures and futures options, also now have short to intermediate buy signals in place, although both are bearish a month to three months out.
The timerline buy on the most recent SP futures chart posted farther down the page is still valid.
My trade entry system, which I have used for 26 years, recently taught me a new buy signal pattern I had never recognized before. The system has only five recognized buy or sell patterns, and I thought I knew everything there was to learn about the system, so for me this is a major point of recognition. I will need to go back in time to see if I have simply missed these before, or whether they were also associated with one of the basic patterns and therefore not appreciated as they were not needed at the time.
The trade entry system is volatile and can change direction on any given day under any one of the five (now probably six) conditions. I always feel more secure when it, sentiment, and timerlines are all lined up together.
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