I'm currently in New York City doing some media work, but I have a little free time this morning and found this study worth sharing.

One indicator we follow is buying/selling climaxes. Simply put, a selling climax occurs when a stock makes a new 52-week low, then reverses and closes higher on the week. You tend to see a cluster of these near market lows and they are considered to be spurred by the "smart money" (whoever that really is) accumulating bullish positions.

The flipside is a buying climax, which is a new 52-week high followed by a sell-off and lower prices on the week. In other words, this action could be the result of smart money distributing shares.

As Todd Salamone mentioned this week in Monday Morning Outlook, there are some reasons to think we are near some very critical levels of support and very well could bounce here. Last week we counted 96 selling climaxes – the most since late December. This is just one small bullet point to consider, but it is a nice sign that some strong buying took place under the surface last week.

Lastly, I'll be on Fox Business Network this afternoon at 2:20 PM ET. Tune in if you can.