Tuesday, August 24, 2010

Market in Oversold Territory

The market has closed lower 10 of the last 12 days.

As shown below, today's declines have put the S&P 500 back into oversold territory. The index is back down more than 5% year-to-date, down 6.66% since August 9th, and up just 2.9% off the July 2nd lows.



The market should bounce soon, but I remain skeptical of a rebound that has any legs. The technical condition of the market has deteriorated a great deal and risk remains high.

For now we will remain safely in our low volatility income / bond funds.

Chart source: Bespoke Financial

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