The Wall Street Journal

Stock Market Still Broken, Technically

By Steven Russolillo and Tomi Kilgore

The S&P 500 has fallen 5.2% in the past five sessions, but even that’s not quite enough to pick a bottom.

Asbury Research’s John Kosar says almost every important bottom the past two years didn’t emerge until a key market-breadth ratio — the 26-week new highs/lows ratio for the NYSE Composite — declined below 12%. It’s currently closer to 20%.

“This indicates that, from a market-breadth standpoint, the market is not yet washed out enough for a bottom to emerge and clears the way for more near-term weakness.”