NYSE still not oversold....
You would think with a 3.6% loss in a single day the market would reach oversold levels. Unfortunately not.
Also compounding the problem is the lack of oversold conditions in the NYSE Summation Index:
Having said that I would expect a bullish divergence in the Summation Index but it's likely not to occur until it gets into the -600 to -800 range. If there was no bullish divergence and the Summation Index continued its push higher it will create a situation where the indicator is overbought and the NYSE is stuck in a decline; setting up a crash scenario.
Damned if you do...damned if you don't.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
Also compounding the problem is the lack of oversold conditions in the NYSE Summation Index:
Having said that I would expect a bullish divergence in the Summation Index but it's likely not to occur until it gets into the -600 to -800 range. If there was no bullish divergence and the Summation Index continued its push higher it will create a situation where the indicator is overbought and the NYSE is stuck in a decline; setting up a crash scenario.
Damned if you do...damned if you don't.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
posted by Declan Fallon @ 10:04 AM
3 comments
3 Comments:
"NYSE still not oversold...." is a great article, but who is the author of this article ? There is no attribution & I have seen this exact same article http://mrswing.blogspot.com/2008/09/nyse-still-not-oversold.html - again without attribution.
The article is syndicated on Mr. Swing (as are others from this blog) and is credited to myself, Declan Fallon.
Glad you like it!
I wish that YOU were given proper credit on Mr. Swing.
Good work.
Thank you
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