Ripe for a Rally
Out of adversity comes opportunity. We saw yesterday, in the later-day hesitancy after the opening rally, just how fragile and fleeting any strength can be at this stage. But that is what is to be expected as a market tries to find a bottom. Nevertheless, we have, technically, what looks like an extremely oversold market that is making a double low point. One hint of its validity is the lower volume on the test than on the original low two weeks ago.
In addition, note on the charts below that the APC, the absolute percent change, is at levels usually associated with turning points from a low. Also, the 10-day Arms Index remains oversold and has been joined now by the longer-term 21-day moving average. That tells us that a rally is likely and is more apt to have a longer-lasting effect.....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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