The Total ETF Technical Ranking (TER) Indicator serves as a comprehensive gauge, pulled from the rankings of 30 ETFs, used primarily by my paid subscribers to analyze market conditions. Think of it as a tool for spotting confirmation or divergence trends and also as a measure of overbought or oversold situations. When the TER approaches the 1500 mark, it indicates that technically, there isn’t much room for improvement—it means most ETFs have a TR of 50, suggesting that a pullback in the S&P 500 Index could be on the horizon due to overextension.
Conversely, an extremely low TER suggests the technical situation couldn’t get much worse, pointing to a scenario where many ETFs appear washed out, potentially signaling an imminent oversold rally or a significant low. Just last week, we saw the TER plummet to 274, which hints that we could soon witness a counter-trend rally, likely a fourth wave in the coming days.
