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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Paxb2u who wrote (6415)	6/29/2010 4:14:55 PM
From: GROUND ZERO™	2 Recommendations Respond to of 222765

Excellent question, let's see if I can make sense out of it for you... actually, the market is not really oversold right now, the market was really more oversold yesterday before the sell signal than it is today, but how can that be? So, let me explain... during an up trend, we may have a pull back which eventually becomes oversold... but, when a new sell signal is triggered (and confirmed) in that pull back the market is no longer pulling back in an up trend, it is now first beginning to top out, so the near term indicators may look oversold, but the real trend is downward and only first beginning, therefore the market is not really oversold, it is actually very overbought... yes, we could see a rally, but the trend is still lower... Was that helpful? GZ