Exodus closed OVERSOLD on Friday, relaying a signal on our 36 mo algorithms that means the market is highly distressed. In the past 36 mos, this level of stress led to some bottoming out action — providing the end of the world isn’t upon us.
I am only cautioned by the extreme levels we endured this past Oct-Jan — when the scores dove back down to 2009 levels. If we are only to use those score, the 6 mo algorithms, the market IS NOT oversold.
In fact, taking a look at the technology sector — we’re not even close.
Conclusion: I’m cautiously optimistic stocks can bounce here because the 36 mo algo is OS — but if we’re dealing with the issues that harangued us in late 2008 (recession, leveraged loans, plunging crude) — we probably have lower to go before a bounce.
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Yes, 100%,
Turnaround Tuesday for a bounce .. Monday, carnage city in the Q’s and major indices
Our spastic use of sanctions was bad enough, but going to friendly countries and imposing tariffs over non-trade issues is an escalation to a different level of crazy. If you are a trading partner country, how do you deal with us going forward? If you are a running a business, how to you plan?
I’d propose that we need laws that don’t give this level of discretion to a single person, however, we already have laws that require congress declare wars – and it didn’t matter.
Maybe they’ll walk it back on the Sunday shows, but damage is already done.
It wasn’t a single person’s discretion. He is acting on behalf of those who voted him in.
Look at the bigger picture, my man. https://www.cnbc.com/2019/05/20/mohamed-el-erian-do-not-discount-a-reagan-moment-for-trump-on-china.html?recirc=taboolainternal
That was an interesting post by the Fly. The Fed has conceded they are amenable to limited rate decreases after major arteries are hit by the clawhammer.
Correction: They will “consider” limited rate decrease after major arteries are hit.