Oversold enough for a bottom?

Mid-week market update: I wrote on the weekend that conditions were setting up for a panic bottom (see Here comes the sentiment flush), but one final flush may be necessary to spark a relief rally. The S&P 500 has now achieved the milestones for a panic bottom. The stochastic is sufficiently oversold. The index violated its 50 dma and it's now filling the February 22nd gap after the strong NVIDIA earnings report, which represents a secondary support level.

 

 

The key questions are:

• Is this a bottom?
• If this is a bottom, is it a durable bottom or just a bounce before prices weaken further?

The full post can be found here.