Oversold but outside of the Nasdaq, not extremely oversold.
I never like a market that goes down for no good reason. The best pullbacks occur with news, This market is not going down on any particular news and it feels like a large position is getting unwound. This was especially true on Friday in many of the technology names.
Whether the news is pending or the selling stops, the bigger picture remains the increase in volatility. As we’ve discussed for a few weeks, VIX is beginning to signal a change in the dynamics and potentially a change in the long-term direction. Use caution here and treat the buying opportunity with tight risk parameters in place.
Today’s Potential Opportunities on Further Pullbacks: