Quick Warning: The Bounce May Come Sooner Than You Think

Given that the S&P 500 has gone sideways since July 14th, it is VERY easy for the market to reach oversold status. With today’s drop, my proprietary oversold indicator is at 38 on $SPY already. Normally, such a move would take it to the 50s.

A test of 2150 seems in order on the S&P 500 and that may take the oversold indicator under 30. From there we wait for a move back above 30 to initiate aggressive long ideas.

We will keep you up to speed at this progresses.