Economy Is the market oversold? Technical analysis by Argus

Is the market oversold? Technical analysis by Argus

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tuesdays are supposed to mark turnarounds on the market, move on a big move on Monday in the opposite direction. Not this time! After 112 craters on Monday, the S&P 500 (SPY) fell another 98 points, with a two-day decline of 6.3%. This is the largest two-day loss since August 2015. The most recent two-day decline of over 6% was when the market corrected after its parabolic move from late 2017 / early 2018. “Data-reactid =” 22 “> Tuesdays are supposed to mean a trend reversal in the market after a big move on Monday and to move in the opposite direction. Not this time! After 112 craters on Monday, the S & P 500 (SPY) fell another 98 points, with a two-day decline of 6.3%. This is the largest two-day loss since August 2015. The most recent two-day decline of over 6% was seen as the market corrected after its parabolic move from late 2017 / early 2018.

As expected, the width was also terrible. NYSE advances minus declines were over -2,500 on both days. This is the worst latitude in two days since the beginning of February 18. After this similar event two years ago, the “500” sank a third day before closing higher. The index fell sharply for a third day in August 2015 before recovering well.

The good news is that we saw a few days when investors threw the baby out with the bath water. Basically everything was unloaded. The best performing sector on Tuesday was Consumer Staples. But this group, too, which is supposed to help investors with market weakness, fell by almost 2%. Energy, materials, industry, technology and healthcare all declined by over 3%. Defensive utilities fell 2%, with interest rates at all lows.

The “500” hit the oversold territory with the 14-day RSI at 28. This is the most oversold daily since August 5, 2019. Preliminary put / call data showed a high level of fear, a good technical sign, on Tuesday. The “500” held support near 3,125 (50% retracement), while the nearest range was 3,050. With the steep decline, rallies could be sharp – so stay on your toes.

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<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This excerpt was provided to you by Argus Research using the Research Reports feature available through Yahoo Finance Premium.Click here to start your free trial *& nbsp; and increase your investment. Yahoo Finance Premium members can read more technical views by clicking on & nbsp;research reportsand filtering based on technical analysis.“data-reactid =” 26 “>This excerpt was provided to you by Argus Research using the Research Reports feature available through Yahoo Finance Premium. Click here to start your free trial * and increase your investment. Yahoo Finance Premium members can read more technical views at research reports and filtering through technical analysis.

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