{"id":61414,"date":"2022-09-23T22:06:08","date_gmt":"2022-09-24T05:06:08","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=61414"},"modified":"2022-09-30T17:40:38","modified_gmt":"2022-10-01T00:40:38","slug":"oversold-conditions-stretch-at-edge-of-years-lows-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/09\/23\/oversold-conditions-stretch-at-edge-of-years-lows-the-market-breadth\/","title":{"rendered":"Oversold Conditions Stretch At the Edge of the Year’s Lows – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong>: <\/h2>\n\n\n\n

Extreme trading behavior finally appeared right after I insisted the stock market looked uninteresting despite dropping into oversold conditions<\/a>. Oversold conditions did a stretch toward the year’s lows and created enough concern to finally send the volatility index soaring. Looming over the trading action all day was a collapse in the British pound (FXB) to levels last seen in 1985 (against the U.S. dollar). The new government in the United Kingdom decided to drench its economy in stimulus with tax cuts and increases in government spending<\/a>. These moves will not only balloon the UK’s already large government debt, but also they directly contradict the anti-inflationary monetary tightening by the Bank of England (BoE). The resulting punishment of the British pound comes just a day after the Bank of Japan (BoJ) intervened to try to stabilize the Japanese yen. A sense of chaos is roiling currency markets and cascading through financial markets. Yet, the extremes that grow from chaos also stretch to the next opportunity.<\/p>\n\n\n

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The Invesco CurrencyShares British Pound Sterling Trust has steadily ground lower for over a year. Was today’s 3.4% collapse the crescendo or the beginning of a new phase of losses?<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n