Larry Connors Daily Battle Plan: Oversold Extremes Hint at Near-Term Bounce
Good Morning.
Yesterday we discussed the fact that, in spite of the S&P losing 3.3 % of its value over the previous three trading days, the overall market was not oversold. Now after yesterday’s sell-off, it’s extremely oversold.
The 2-period RSI of our Country Fund ETF Universe is in the teens this morning. The U.S. indices are now showing multiple days under RSI 10 and when you combine these two readings, it’s telling us a bounce is very likely near within the next few days.
The above is from Larry Connors’ Daily Battle Plan. To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
Larry Connors is founder and CEO of TradingMarkets.com.