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Friday, August 1, 2014

How oversold is the US?


Bespoke just pointed out that consumer staples and industrials are both -3SD, which (unless we're seeing a worldwide liquidity collapse) is silliness.

So let's look at two charts:

 Yesterday's close number is silliness, and a drop below -2SD always recovers over the past 3 years.





Same for the 200-day.

Note that the NYSE index includes a bunch of bonds and stuff that aren't equities, so to get this low on NYSE the market must be puking anything that moves.

A lot of robots are going to get a spanking Monday morning when the humans come back in and see what they've done to the place.


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