RUM wave dashboard indicators are beginning to enter the green zone, specifically Primary Indicator #1. For a solid entry signal we need the following to happen: 1) Primary #1 in the green zone 2) Primary #2 in the green zone with a reversal of needles (black above the grey.) The caveat to both of those would be if the Leading Directional Indicator turns positive in the coming week. Ideally, we'd like to see all three happen at about the same time. I'm also watching the Super Bull indicator, which has the potential to reach the green zone next week.
In the charts below we can see that the small caps are in a pretty solid downtrend while the SPY is at a price level with lots of previous trading volume (indicated by the blue graph on the right.) I would consider it a potential pivot point - either higher or lower. I think we may see a little bounce early in the week, hopefully followed by another larger downleg to create an oversold condition that will signal a solid entry point.
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