A quick recap to yesterday: the SPX gapped down right to my Oversold level of 1398; ultimately giving way to down to 1394. At that point, the SPX immediately reversed course back to 1398; holding that level for a bit and struggling upward for the rest of the day. I think yesterday’s price action was significant in showing support throughout the 1390’s structure. While some may point to 1394 as yesterday’s key level on the downside, I would suggest 1398 was the real pivot.
Over the course of the last week, the quantitative Oversold levels have steadily risen. Today’s Oversold level is 1399; Overbought level is 1416. I would suggest that we are in a regime in which we will frequently move into Overbought territory, which coincides with my prediction of new yearly highs by mid-May on the SPX. There are some economic releases today, but all eyes are on tomorrow morning’s Employment Report.