Yesterday’s Low came in right at yesterday’s Oversold level of 1310. Today’s quantitative levels are 1308 (Oversold) and 1335 (Overbought). The SPX needs to begin to press the Overbought levels in order to achieve escape velocity. This is very comfortable range (1308 – 1335) for the SPX looking back over the last six weeks; every breakout has ultimately failed.
This morning’s economic data was a mixed bag and futures are trading slightly higher; Treasuries are also slightly bid. I continue to think there is value in equities at these levels and expect a breakout to the upside and any pullbacks to be met with buying pressure.