Bulls Explode Out of Oversold Trading Conditions – The Market Breadth

bulls explode out of oversold trading conditions

The bear market intrusion to the oversold period gave way to an explosion of bullish trading action this week. The maximum drawdown of October for the S&P 500 (SPY) was 4.0% well above the average for the month. This extreme move provided the perfect setup for the sharpness of the current oversold bounce. The rubber … Read more

How to Trade A Bear Market Intrusion On An Oversold Period – The Market Breadth

bear market intrusion

Stock Market Commentary A bear market intrusion upset the dynamics of this oversold period. The NASDAQ is back in bear market territory. Both the NASDAQ and the S&P 500 broke down below their respective 200-day moving averages (DMAs) (the blue line in the charts below) and entered “correction” territory which is 10% below the 52-week … Read more

Ugly, Breaking Down, but Oversold – The Market Breadth

oversold, ugly and breaking down (Credit: Duet AI)

Stock Market Commentary At the end of September, I asked skeptically whether an oversold bounce could prevent an October swoon. As I suspected at the time, the answer turned out to be no. The market-moving headlines for October have included weighty, tragic, and alarming news making for a demotivating trading environment. An oversold bounce earlier … Read more

An Oversold Dilemma for the Stock Market – The Market Breadth

oversold dilemma (Credit: Google Workspace Labs, AI-generated)

Stock Market Commentary It was an unfavorable day in the stock market, as I anticipated in “Small Cap Stocks Uncork Oversold Conditions.” The following post is a summarized transcript of a “show and tell” video I posted to talk through the accumulating extremes in this oversold market. I used ChatGPT to help with the clean-up. … Read more

Small Cap Stocks Uncork Oversold Conditions – The Market Breadth

uncork (Source; Google Workspace Labs, AI-generated)

Stock Market Commentary The last quarter of the year and the third of the stock market’s most dangerous months started off with a swirl of signals. Each of the three major indices exhibited its own behavior. Small cap stocks plunged and uncorked oversold trading conditions. The S&P 500 clung to flatline. The NASDAQ happily shot … Read more

Oversold and Over Hard – The Market Breadth

oversold and over hard (Credit: Google Workspace Labs AI-generated image)

Stock Market Commentary Oversold trading conditions await no more. The stock market went over hard and dropped into oversold territory with a sinking feeling. Important support levels broke down, interest rates continued to surge, the U.S. dollar continued to race higher, and, returning to a theatre near you for yet another dreadful showing is Groundhog … Read more

Stocks Leave Regional Banks Behind – The Market Breadth

leave regional banks behind (Credit lisa nolan on Flickr)

Stock Market Commentary: Just a week ago, the stock market was teasing oversold conditions. The lingering memories of the Panic of 2023 seemed likely to push the market deeper into oversold territory before sellers exhausted themselves into a market rebound. Buyers decided not to wait. A broad-based buying spree conspired to leave regional banks behind … Read more

Emergency Exit Looms As Market Teases Oversold Conditions – The Market Breadth

emergency exit

Stock Market Commentary: The Federal Reserve was an anti-climactic headliner last week. The Fed proceeded with a 25 basis points rate hike couched in words that suggested that inflation remained the Fed’s biggest concern. In the Q&A portion of the press conference, Chair Jerome Powell essentially downgraded the Panic of 2023 to the Speed Bump … Read more

Flirting with Oversold Trading Conditions Ahead of the Fed – The Market Breadth

flirting with oversold (credit: Bob Doran on Flickr)

Stock Market Commentary: A sobering thought: American capitalism has yet to figure out how to sustain a stable banking system. The U.S. created the Federal Reserve system in 1914 as a response to the lessons from the banking Panic of 1907 and yet bank runs, bank panics, and bank failures continue to headline market dynamics … Read more

Project Calm from the Feds Bounces Stocks Away from Oversold – The Market Breadth

calm

Stock Market Commentary: The Feds delivered on Sunday as Janet Yellen promised. The FDIC, the Treasury, and the Federal Reserve joined forces to offer emergency financial backing and reassurances for the banking system, a kind of “Project Calm” to project calm. The Federal Reserve even came up with a new acronym that looks like a … Read more