{"id":57125,"date":"2021-06-21T23:13:42","date_gmt":"2021-06-22T06:13:42","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=57125"},"modified":"2021-06-22T16:10:07","modified_gmt":"2021-06-22T23:10:07","slug":"follow-through-trades-another-bounce-from-oversold-enough","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/06\/21\/follow-through-trades-another-bounce-from-oversold-enough\/","title":{"rendered":"Follow-Through Trades: Another Bounce from “Oversold Enough”"},"content":{"rendered":"\n

The Follow-Through Intro<\/strong><\/h2>\n\n\n\n
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The stock market followed a rare stumble<\/a> with a broad-based rebound from “oversold enough” conditions. Stocks were generally up across the board as buyers rushed in to grab “bargains.” AT40 (T2108)<\/a>, the percentage of stocks trading above their respective 40-day moving averages (DMAs), jumped from 37% to 46%. My favorite technical indicator put on hold any notion that oversold conditions would appear right around the corner. Sellers faded and buyers celebrated. The constant beating on market breadth still suggests that oversold conditions are coming. As a result, I am assuming for now that subsequent market rallies will fizzle into churn and chop, perhaps with an upward bias for key segments of the stock market. <\/p>\n\n\n\n

See below for the video covering the follow-through trades.<\/p>\n<\/div>\n\n\n\n

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\"follow-through<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n
\"T2108<\/a>
T2108 (AT40) rebounded sharply from “over<\/em>sold enough” levels (Source: FreeStockCharts)<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n