Daily Report : Recovering from under the 200 day average; Looking to financials for a bottoming clue

Few stocks within the S&P 500 have managed to climb above their 200-day moving averages. While that has typically meant the worst of the selling is over, it can also be early in the "puke" phase of a decline. If we optimize the parameters, we see that a good compromise is waiting until there is a modest sign of recovery.; The financial sector hasn't done much to confirm the idea that stocks are near a bottom. On a relative basis, they continue to reach lower lows. But a look at past bottoms shows that this is not unusual behavior, as the group rarely leads out of major declines.

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