Markets are sending conflicting signals with some indices oversold and some not. Per my earlier post 2 days ago tech certainly looked to be ready for a bounce and we saw some of this yesterday. The weekly $NYSI is of particular interest: While not completely oversold yet it sure is heading in this direction and quickly so. One could certainly imagine one more hard low this week or next and that chart would have a good shot of ending in very oversold territory. Shorts may be on notice:
After all one could surmise that all this selling in the high fliers was simply tax loss related selling as people had to generate cash for their tax bills due next week. If so then indeed Occam’s Razor may be applicable here in that the simplest explanation may also be the best explanation.
I remain flexible and opportunistic in my approach.
Categories: Daily Market Brief