Market Taking Too Many Days of Rest

In the past when we've seen the Overbought/Oversold Oscillator get so oversold, we've seen the market rally hard for days on end. Up big every day, rarely taking a rest in the first days after the oversold condition arrives. This time the rally hasn't been filled with much oomph, with the exception of Wednesday. We've seen several days of rest.

As we look at the oscillator, we see it is still oversold. If we look behind the chart to see the numbers that make up the chart, we can see why it is not yet overbought. For this indicator, I use the 10-day moving average of the net of the advance/decline line. So we look back 10 days ago to see the numbers we're dropping. When we are dropping a string of red numbers, we consider the market oversold. Conversely, a string of black numbers (or green) and the market is overbought....298 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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