The 2108 indicator is too oversold and that may hint a big bounce is imminent.

T2108 - % Stocks Above 40 Day Pma
The indicator's reading is 18.64. Remember that the indicator was 16.31 on 5/18/2012 before a 5 days' bounce.
SPX daily
The decline since 4/2/2012 can be counted as a 5 waves correction and it seems that wave 5 is about to finish. If this becomes real we may see a huge bounce at the end of wave 5 around 1260.

No comments: