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.
Markets traded significantly higher today on large volume. This signals a follow through day from last Monday’s lows. Caution is warrented when trading in summer months.