The S&P 500 may be oversold right now, and the S&P 500 seems to have bounced at the new support level of 1326.
According to different stock market bottom indicators, the S&P 500 may be oversold right now.
- Ratio of S&P 500 Stocks Above 200 Day Moving Average to Stocks Above 50 Moving Average: 2.21. [Start looking for bottom after this number spikes above 2.0]
- S&P 500 Stocks Above 200 Day Moving Average: 19.04% [Start looking as percentage goes below 40%]
- S&P 500 Stocks Above 50 Day Moving Average: 8.62% [Start looking as percentage goes below 20%]
- 10 Day Moving Average of Put-Call Ratio: 1.17. [Start looking as number goes above 1.1]
- S&P 500 High-Low Index: 0.95%. [Start looking as number spikes below 10%]
All signs seem to indicate an S&P 500 Bounce may be coming soon (possibly after some sort of gap down, high volume down day, then a massive rally, for a capitulation bottom).
However, the bounce doesn't necessarily mean that we are forming the intermediate term bottom. We may retrace our recent downturn, back up to 1411 (38.2% Fibonacci Retracement) to 1443 (50% Fibonacci Retracement).
We may eventually re-test the S&P 500 lows, and possibly breakdown even more.