Extreme Oversold Signals Build for $SPX as $SPY and $DIA Stretch Lower

SmartReversals
03-13 09:54

$S&P 500(.SPX)$

Even during persistent downtrends, such as the 2025 tariff crash, breaching the lower Bollinger Band has consistently represented an extreme condition that triggers relief bounces. No exception.

There is no doubt a short squeeze is coming considering also the McClellan Oscillator that is more oversold than it was in the 2025 bottom.

The key point is to watch if $6,882 is recovered, that would validate a solid and sustainable bounce.

The bearish move is overextended as posted previously, and seasonality favors a bounce.

$SPDR Dow Jones Industrial Average ETF Trust(DIA)$ has the same overextended setup as the $SPDR S&P 500 ETF Trust(SPY)$ .

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