300 Of The 500 S&P 500 Stocks Are Oversold

My Swing Trading Approach

Wait and see if the market wants to continue with the bounce off of the morning lows. If not, it will be a time to sit on my hands and watch.

Indicators

VIX – Massive candle on the VIX after spiking all the way up to 50.3 yesterday, and then declined all the way down to 30. Look for the VIX level to moderate some in the coming days .

T2108 (% of stocks trading below their 40-day moving average): Huge 21% up-day, after reaching major lows of 11.97%.

Moving averages (SPX): Still trading well below the 50-day moving average. Could be recaptured today on another significant rally.

Industries to Watch Today

Consumer Cyclical was the best industry, with Technology nipping at its heels. All the major industries, minus utilities, demonstrated a healthy, and much needed bounce.

My Market Sentiment

Much expected bounce yesterday – and well overdue. Still 300 of the 500 S&P 500 stocks are oversold, and even dead cat bounces tend to last a few days. Anything is up in the air today though, and the futures suggest another wide range in the price action today.

S&P 500 Technical Analysis