Enough sell-off for now?

SPX futures are looking pretty oversold here, and you could say there’s a bit of negative divergence on the hourly:

TD Ameritrade

The US markets are actually among the least oversold around the world. Japan, Australia, China and lots of Europe are down a lot more, which tells me there’s room for a corrective bounce here.

Here’s Australia’s main stock index, for example:

Bloomberg

Of course, I think all stock indexes are going to make deep new secular lows in the not-so-distant future, and the land down under will finally be welcomed to the depression as its real estate bubble pops and commodities decline again.

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2 thoughts on “Enough sell-off for now?

  1. I’d feel better if I didn’t see bonds pushing their highs and copper selling off again. If enough people are leaning the same way in this boat it isn’t going to rock back hard, it’s going to capsize.

  2. Good point. Another bearish sign, besides the fact that we’ve barely begun to correct all those months of complacency and bullishness, is the swiftness of the action around the world today. Ukraine, where I am right now, fell 12% today. Often the swiftest, hardest move does not mark the extreme in price.

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