Back in the glory days of early 2012, there wasn’t a single day in which S&P futures indicated a 1% decline. For the past two days, the SPX went deep into Oversold territory only to settle above. Today’s quantitative Oversold level is 1359 and futures are indicating the SPX will open lower than that. I will be adding equities on the long side today. I expect us to close into Oversold territory setting up for a push higher into Overbought territory.
The key number for today is 1.80%–the yield on the 10 Year Treasury Note.