As previously discussed, the sharp sell off running from the
latter part of May through mid-July created a deep oversold
condition. Since this sell down also made it clear the US is
still in a bear market, it was suggested one be an angel and
not a fool in approaching the oversold. The market has moved
erratically up from the deep oversold and has even been nice
enough to form a channel. Even so, the signs I like to watch for
a change of trend have been scant indeed. So, despite the stray
thunderstorm, I have been relaxing out on the deck with the
occasional libation.
But, I have not lost heart, and continue to monitor the situation
for a long side trade. Specifically, I am watching the action of
the 10 and 25 day moving averages, and MACD and Stochastic
for the weekly charts. The daily SP 500 is here.
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