Stocks corrected over the last two weeks with QQQ leading the way. IWM held up the best and RSI moved into the oversold zone for SPY. Today we will look at previous instances when RSI became oversold for SPY. Some indicators are pointing to a multi-week correction (NDX %Above 50-day), but we also have the turn of the month upon us and this eight day stretch has a bullish bias. Attention then turns to the ranking tables to show the strongest/weakest ETFs, recent StochClose signals and the most oversold ETFs. The charts show trailing stops triggering in high flying KRE and XLF, but holding in high flying XLE and XOP. The 20+ Yr Treasury Bond ETF experienced a selling climax and could firm or bounce. There are also lots of pullbacks within zigzag uptrends to watch next week (IGV, SOXX).
Weekend Video and Chartbook – QQQ Leads Lower, SPY and Oversold Conditions, Turn of the Month, Selling Climax in TLT (Premium)
Thanks for tuning in and have a great weekend!
-Arthur Hill, CMT
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