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CHARTS: A WINDSOCK, NOT A CRYSTAL BALL
Where does the S&P 500 officially reach "oversold" levels, and what near-term tactical levels should be followed?
Art Huprich, CMT
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:
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Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management
—Written 4.17.2017. Chart sources: Stockcharts.com.
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