Oversold Markets Signal Rebound Potential Despite Bearish Technical Backdrop

TopdownCharts
15:54

Learnings and conclusions from this week’s charts:

1. Technically things look fairly bearish overall.

2. But recent history shows the tendency for rebounds (even during bear markets).

3. And conditions are currently looking notably oversold.

4. Yet there are some vulnerabilities being exposed in private markets.

5. There’s also still a few positive signs underneath all the pessimism.

Overall, the high-level technical view looks pretty ugly.

But we have a key opportunity for a rebound next week given oversold conditions, support levels, and a historical precedent for rebounds and rallies even if it turns into a more prolonged bearish episode…

$S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2606(ESmain)$ $NASDAQ 100(NDX)$ $Dow Jones(.DJI)$ $iShares Russell 2000 ETF(IWM)$

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