Investors Skeptical of Oversold Stock Market's Potential Relief Rally
Originally Published 2 years ago — by MarketWatch
The U.S. stock market continues to decline despite being oversold, with potential buy signals emerging but not yet confirmed. The market remains in a defined downtrend, with resistance levels at 4330 and 4400. Support is near 4200, and the market is still below its oversold condition. Equity-only put-call ratios are on sell signals, and breadth indicators remain negative. The NYSE-based "New Highs vs. New Lows" indicator is bearish, and some stocks are hitting new lows. The volatility complex is showing some weakness, and the construct of volatility derivatives is a cause for concern. Overall, a "core" bearish position is being held, with no confirmed buy signals yet.
