“News” is sending the stock market up and down. Meanwhile major stocks like AAPL, MSFT, and AMZN have reached various levels of “oversold” that the majority of the time would make me an interested buyer. On the opposite end the smaller stocks that make up the Russel 2000 are making new highs that may be considered “overbought” levels. So where does this broad spectrum of results leave us looking forward? 

My answer is not based entirely on technical evidence, because as I have just pointed out, the evidence is very scattered. So my view here is quite transparently more subjective then is usual or is my preference. 

The market I believe is vulnerable to a larger correction over the next few weeks. A little bit harder to be too precise given the call is more subjective. In the intermediate term I come down on the “not bullish” side. In the short term those major stocks mentioned above that are very oversold, probably need to alleviate that condition with a rally. After that I think everything goes lower. 

Thanks,

Joe

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