Upward Pressure Is Taking Over

The oversold condition we remarked upon at the end of last week appears to have now come into play. In the midst of a dithering Washington in response to the Syrian dilemma, the markets were doing much the same thing, but after the extreme selling, the upward pressure is now taking over. It looks as though we made a low and then tested the low in the last week, and now we are embarking on a rise that should go further. Also in the mix is the fact that a low in the two-month cycle was due in late August. 

The oversold condition was seen in both the five-day and 10-day moving averages of the Arms Index, as we see on the second chart, below. Two days of lower AI numbers have moved the five-day to a more neutral position, but the 10-day is still quite oversold. There should be room here for more on the upside, and profits to buyers who are willing to move quickly, although I am not predicting new highs....248 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.