NVT ratio serves as a crucial indicator for identifying local market tops and bottoms. An NVT value exceeding 2.2 suggests a potential market top, signaling overbuying conditions. Conversely, an NVT value falling below -1.6 indicates a potential market bottom, suggesting overselling conditions.
Currently, the NVT value is below -1.6, indicating local bottoms. If the 111-day moving average (DMA) can remain above 65000, an upward movement may be possible in the coming days. These metrics suggest that the market is in oversold conditions and could enter a recovery phase.