Opportunity Awaits on the Other Side of Sell-Off

The SPX opened up a large range over the last 7 trading days; from 1315 to 1365 and–with this morning’s futures indication–nearly back again.  Today’s Overbought level is 1370 and Oversold level is 1323.  The quantitative range is 47 handles wide with much more room to the upside.  The SPX will likely trade lower all day and will probably close in Oversold territory.  I think this is a buying opportunity for both the shorter term and intermediate term.

Ten Year Notes traded above 1.67% on Friday, but were not able to push above 1.70%.  While they’re not quite at the levels they need to be at in order for equities to really take off, they are trading at a much healthier level than they were three week ago.

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