From FOMO to Tech Panic to...

Mid-week market update: I am writing the mid-week update a day early for two reasons. First, tomorrow is FOMC day and anything can happen. As well, I am getting on an airplane and I will be in the air when the market closes.

It is astonishing how nervous the market has become after Facebook's disappointing earnings report. Callum Thomas performs an unscientific Twitter poll on weekends, and the bears have come out of the woodwork. Even if you are bearish, you have to ask yourself how much downside risk could there be at current levels? These conditions are indicative of the jittery nature of this market. A brief and minor pullback was enough to move sentiment to a crowded short reading.

In the short run, the ability of the SPX to hold above its breakout level, and the NDX to hold above its 50 day moving average points to an oversold rally here.

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