The Only Market Indicator With 100% Accuracy
By Jeff Clark

The stock market may not have hit bottom just yet, but it's close – really close.

I'm certain of it. A whole host of technical indicators are now at levels that typically occur at market bottoms. For example, take a look at this chart of the Nasdaq Composite Bullish Percent Index...

This chart basically measures the percentage of Nasdaq stocks trading in an uptrend. The current reading of just over 32 is within the range where this indicator has bottomed during every correction over the past four years.

Another good sign was the relative strength of Merrill Lynch (MER) shares midway through trading yesterday. As the major market averages were pounding out new lows on the day, MER was actually gaining strength. It's true that MER closed down more than two points, but that was well off its early morning lows.

As we've written about so often in Growth Stock Wire, MER is a good leading indicator of immediate market direction. That the stock closed off its lows while the rest of the market was falling is a good indication that the broad-based selling may be coming to an end.

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These two indicators, along with dozens of others, are suggesting the current bout of selling is a bit overdone and we're on the verge of a pretty good rally phase.

But the single best indicator... the technical gauge with a 100% accuracy rating... the infallible market barometer that only flashes signals once every year or two... was waiting for me on my answering machine when I arrived home yesterday afternoon:

"Hi Jeff. It's Mom. Could you please call me back and let me know what the heck you think is going on in the stock market. I'm thinking of just selling everything. Bye."

I've written before about the "Mother Indicator." Mom is the perfect example of an individual investor. She's smart. She does her homework. She studies and examines every investment before she buys. And then she succumbs to the emotions of fear and greed just like everyone else.

Mom is an excellent contrary indicator. Over the years, I've learned that it's best to sell when Mom is looking to buy. And it's best to buy when Mom is looking to sell.

At the end of the day yesterday, Mom wanted to sell. And, that can only mean one thing...

It's time to start buying.

Best regards and good trading,

Jeff Clark