I don’t attempt any fancy tricks with stochastics because the simple ones have always served me well. In the Diamond chart shown, my primitive way of looking at it sees a succession of five price lows on the daily chart, each of which has generated a corresponding stochastic (i.e., oversold) low. Because there is only one minor divergence between any of these pairs of lows, it can be inferred with reasonable confidence that the dominant trend is more likely to continue rather to reverse. As such, I will put even more weight on the criteria spelled out in today’s commentary before I infer that a major bottom is in.