Certain market indicators are at levels of extreme bullishness. The run up in value stocks since the US elections has been shocking. Now is a good time to lighten up on bullish bets.
Volatility in the US has exploded, throwing the markets into disarray. The intermediate-term trend is bearish, with extreme oversold conditions likely to produce sharp, but short-lived, rallies. We will look at some important indicators to see how oversold the markets are and what usually happens at times when markets sell off quickly.