As a rule of thumb, it is good to buy oversold conditions in an uptrend. Oversold conditions can be defined in one of several ways. One possibility is a daily stochastic reading below 20. We are there right now on the clearstation.com 9-month chart of the S&P 500 Index. Things are bullish right now, even though the news seems bleak. Another possibility is a dip below the 50-day and 13-day moving average in an uptrend. We dipped below both respective moving averages on Friday. Finally, there is a time element. We are due for a low this coming week.
Taken together, these factors suggest we are heading higher into August 1.
Interesting.
Have a good weekend!
Wink
I think you are right
ReplyDeleteToday (mon 18 jul) was a good indication that your projection is correct. The bears pulled the S&P below 1300 today but bull pressure would not allow it to stay down. We ended closing down but gained back a large portion of what was lost during the day.
I would expect tomorrow to be up or flat.
Thanks for the post wink
Terry