Isn’t this fun!?
The good news is the market is up right now. The bad news is the Dow was up yesterday for most of the day but then closed 200 points down.
It should be remembered that even in tumultuous moments like the one we are in the market rarely goes straight down.
This string of sizable deviations from the 50-day moving average is a testament to just how severe recent losses have been compared to the index’s recent range.“Not even the crash of 1987 got this oversold relative to trend,” writes Bespoke.
The money management and research firm produced a pair of analogue charts showing what’s in store if the S&P 500 mimics the price action seen in mid-1940.