FYI: t’s a much different picture for the equity market this morning than it was yesterday, with futures indicating a sharply higher open. Just to reiterate our point from yesterday, though, we continue to expect violent moves both up and down throughout the trading day. On a positive note, JPMorgan, Citi, and Wells Fargo are all currently trading up on earnings. Hopefully, that initial positive reaction can hold.
After yesterday’s big decline, the S&P 500 closed 3.77 standard deviations below its 50-DMA, which is the most oversold reading for the index since August 2015! As shown in the chart below, occurrences of the S&P 500 trading 3.5 standard deviations or more below its 50-DMA are few and far between in the index’s history. Since 1928, there have only been 18 such occurrences.
Regards,
Ted
https://www.bespokepremium.com/morning-lineup/morning-lineup-way-oversold/
