A bloodbath on Wall Street

Mid-week market update: I had expected to begin to wind down and relax for the holidays this time of year. Instead, we got a bloodbath in the stock market.

To say that the market is oversold is an understatement. Sure, standard measures indicate oversold conditions, such as the VIX Index had risen above its upper Bollinger Band. Interestingly, the VIX Index failed to rise today despite the carnage in the stock market, which could be a sign of hope for equity bulls.

The Fear and Greed Index is also showing extreme conditions.

Oversold markets can become more oversold. How oversold? This report from UBS puts the velocity of the sell-off into context.

Here is the full chart from UBS:

The full post can be found at our new site here.