The TeleChart T2108 indicator is oversold once again. Last week it moved below 10%. The red line in the plot above shows the times since 1987 when T2108 has been at or below 10%. These points have generally been good big picture buying opportunities. However, sometimes it can be a rough ride as during the 2002 bottom.
The current market crash is an example of a very rough ride. (See the plot above.) The market began a recovery at the end of 2008, but has now retreated to below the crash lows and T2108 has again moved to very low levels. The 1987 crash is the only other instance of extremely low T2108 values persisting over a multi-month period.
However, the 1987 bottom was much better behaved. (See the plot above.) T2108 went to extremely low levels in October 1987 and then chopped back and forth until December 1987 when a recovery began.
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