The Dow just roared 1,000 points higher in a single session after December sell-offs swept its internals to extremes. Those extremely oversold conditions have one technician seeing positive signs in the market.
The Dow just roared 1,000 points higher in a single session after December sell-offs swept its internals to extremes.
Before Wednesday’s session, more S&P 1500 stocks were at 52-week lows than any other time since November 2008. The put-call ratio, a sentiment indicator in the options market, was also at its most bearish since 1995.
Those extremely oversold conditions have Miller Tabak equity strategist Matt Maley seeing positive signs in the market.
„It tells us we can finally see a real bounce here,“ Maley said Wednesday on CNBC’s “ Trading Nation .“ „If you look at the chart on the S&P 500, it touched a key support level on Monday, that’s its 200-week moving average. That’s the level that held in 2016 and in 2011 when we had the European crisis so that should provide some good support here.
