Day Hagan Research Update

DAY HAGAN TECH TALK

CHARTS: A WINDSOCK, NOT A CRYSTAL BALL

SUMMARY

Where does the S&P 500 officially reach "oversold" levels, and what near-term tactical levels should be followed?

WRITTEN BY

Art Huprich, CMT

POSTED

April 18, 2017

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Since March 1 the S&P 500 (SPX/2349.01) has corrected/consolidated. If Bollinger Bands are drawn around the index's rising 50-day moving average, the SPX won't be considered statistically "oversold" unless it trades in the vicinity of 2309. Bollinger Bands, not shown on the chart below, are dynamic and adjust every day. Consequently, the "oversold" level will marginally change each day. Please reach out if you would like to know the changes that occur in this statistically derived "oversold" level, or the comparable "overbought" level.

Between here and oversold levels, and in order to aid in discerning the equity market's next short-term directional move, shown below are some tactical levels to follow:


S&P 500 With Rising 200-DMA: 6 month Chart
Russell 2000 Small Cap Index with Rising 200-DMA and Flat/Falling 50-DMA: 6 month Chart
DJ Transportation Average with falling 50-DMA (resistance) and Rising 200-DMA (Support): 6 month Chart
This index is worth following because it can be a good guidepost for Wall Street's willingness to take on risk or reduce risk.
Financial Sector SPDR Fund with Rising 200-DMA: 6 month chart

Have a wonderful start to your week. Please know that Day Hagan Asset Management appreciates your support and hard work!

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

—Written 4.17.2017. Chart sources: Stockcharts.com.

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