Last week’s Market Update – Showtime! – announced that the time had come for a sell-off in equities and we were not disappointed as the Dow lost over 234 points (worst week since March). Internal indicators now point to a pause in the decline. It’s now time for a short Intermission.

One of those indicators is the total number of unchanged issues divided by the total number of issues traded (NYSE). It reached a low on Thursday indicating a low in equities. 

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A 21-week cycle low is due the week of August 21 (solar eclipse!). Unless equities reach the 38.2% retracement of the 2016 rally near 2,220 by then, I doubt that will be the end of the decline. Rather, it will likely be the beginning of an intermediate bounce in a bigger seasonal decline. 

(Click on image to enlarge)