SP 500 (SPX): Oversold Enough
There are a lot of signals for a tradable bottom:
– NYSE Summation Index = – 300 (Very Oversold)
– McClellan Oscillator = – 73 ( Very Oversold)
– % SPX stocks below 50 dma = 27,20 (Oversold and Positive Divergence)
– 9 straight days of lower eod prints
– 4 days below Bollinger Band
– Daily RSI below 30
– etc ………..
So we should be very close to a tradable bottom.
SP 500 (SPX) is now at the 200 dma. If it does not hold, in the weekly chart the next support is located at the 50 wma = 2070
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Price is suggesting that if the 200 dma holds a probable bounce could falter at the 50 dma
The overall corrective pattern unfolded from the August high is strongly suggesting that once this pattern is done (probably in the proximity of the 0.5 retracement = 2000 the next move will be heading back to new highs.
I still strongly believe that SP 500 ( SPX) is involved in a Topping process that will end very badly
maybe with a huge Ending Diagonal: