As much I thought 1360 was too low as an Overbought level yesterday with futures +11 pre-market, the SPX closed below that after rising as high as 1365.88. Today’s Overbought level again surprises me at 1356, which is below yesterday’s close. That’s a rarity for my quantitative levels and what it suggests to me is that the downside momentum that equities have recently experienced will be tough to overcome. Today’s Oversold level comes in at 1343.
JP Morgan ruined the (very little) momentum the SPX had at the end of the day yesterday with their announcement last night and today will likely be Groundhog Day all over again. Perhaps, like the movie, it takes a reevaluation of the conditions surrounding us and our subsequent output (i.e. allocation).