Using a simple spread called the Investor’s Intelligence bull‑bear spread together with the RSI indicator, you can spot times when the market feels very risky and may turn around soon.
When this spread shows a high‑risk signal, look at the strength of different sectors. Some sectors, like technology, often start to lose steam first, letting other areas step in.
Check a few time frames—daily, weekly, and monthly—to see which sectors are gaining strength. Look at relative strength, momentum, and the shape of price moves. This helps you find which parts of the market might be ready to rise.
Right now, materials, energy, consumer staples, financials, and industrials all show early signs of a possible bounce. Watching these groups can give clues about where money may flow next.
There are also a handful of individual stocks that are forming solid technical patterns. These stocks could be good candidates if the sector shift continues.
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