Oversold Bounce Time after One More Rinse
Pre-market oil is teasing $142.00 and equity futures are down.
It looks like equities will have that final rinse down today that will clear the way for a tradable bottom early next week.
The Banking Index (BKX) is deeply oversold as measured by the Slow Stochastic (STO). Down momentum has been fading as measured by the MACD. A bounce is pending in the very near term.
The S&P 500 (SPX) is fast approaching support around the 1270 area. Although deeply oversold, MACD is still accelerating downwards. Any bounce would be short lived and would fall short of clearing 1330.
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