Oversold, but...

I would like to think that my last post, The road to a 2016 market top, panicked the market into a vicious sell-off on the first trading day of the year, but I can't think of many people with have the hubris to make that kind of suggestion. As the market closed, the SPX was down 1.5% and it was off over 2% at the worse point of the day. What`s next?

At the close, the SPX managed to stay at a key support zone, with RSI 5 at an oversold reading on roughly average trading volume. These readings appear to be constructive and suggest that downside is limited from these levels.

Other key metrics are also flashing oversold readings, but I would warn that oversold markets can get more oversold and my initial take is that there may be some further minor downside risk from these levels.

The full post is at our new site here.




Site Notice
If you signed up for the notification of our Early Bird Special Offer but did not receive it, I have had some reports that they got classified as spam so please check your spam folder. Otherwise you can email me at cam at humblestudentofthemarkets dot com and I will send you the link.

As well, I would like to remind readers that we will cease to accept new subscribers as of January 15, 2016 as a way to better control the growth of our new community. Hurry, the deadline is coming up faster than you think.