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Another indicator that I find useful when trading ETF's is a moving average of the advancing and declining issues on the NAZDAQ. Generally, the markets will be oversold and ready for a bounce when the 5 day average of declining issues outpaces the 5 day average of advancing issues by 400 or more. To compute, sum the advancing issues for the past 5 days and divide by 5 and compare that to the sum of the prior 5 days declining issues also divided by 5. If this number is negative 400 or more, it is generally a good time to buy. The reverse is also generally true for overbought markets. Yesterday, according to my data provider, the number was -362.

Here are some prior signal dates:

Feb 21 +310 SPY 128.49
Feb 13 -418 SPY 126.43
Feb 7 -434 SPY 125.48
Feb 1 +386 SPY 128.39
Jan 27 +518 SPY 128.57
Jan 11 +482 SPY 129.31
Dec 30 -358 SPY 125.19
Dec 20 -501 SPY 125.83
Nov 22 +485 SPY 126.3
Nov 3 +684 SPY 122.27
Oct 10 -765 SPY 118.77