Surge in Selling Climaxes Suggests Stock Market Bottom for Near-to-Intermediate Term. Investors Intelligence notes that last week saw a significant number of stocks reversing out of their 52-week lows (see below).
Historically, that is yet another indicator suggesting that the stock market major indices have bottomed for the short-to-intermediate terms. Selling climaxes occur when a stock makes a 52-week low but then closes the week with a gain. That generally indicates that stocks are moving from weak to strong hands.