The Market Is Extremely Oversold

My Swing Trading Approach

There will be a substantial bounce to play at some point in the future. I will sit on the sidelines until that time is unveiled.

Indicators

VIX – Biggest move yesterday in the history of the indicator, rallying 115% to 37.32. The move higher is likely to continue into today.

T2108 (% of stocks trading below their 40-day moving average): Extreme oversold reading on T2108 with a 49% decline, and 19.4 reading.

Moving averages (SPX?): 50-day moving average was sliced right through. Now the 200-day MA is in play.

Industries to Watch Today

Nothing was spared after yesterday’s sell-off. Each sector saw losses ranging between 2% and 4.1%. Each sector is sporting a broken chart.

My Market Sentiment

There’s no doubt the market is extremely oversold. A massive market bounce is coming. It is a matter of “when” that perplexes traders. Wait for the bounce to start unfolding before making your move. For now, this market could easily continue its meltdown.

S&P 500 Technical Analysis