Investech Research notes that their Pressure Factor, a proprietary indicator of oversold reading, has fallen to a minus 111. This is the 4th most oversold level in 35 years; The 3rd reading came just before March 2003 market bottom.
Short-term Pressure Factor
click for larger chart
Source: Investech Research
Jim Stack notes: “Each of these three previous extremes saw sizable market gains in the months that followed. So this would suggest a high probability of a pre-election rally rather than a bull market post-mortem.” The caveat to this is that where an oversold extreme leads to a short-term bottom, it typically takes several weeks after this extreme. “Don’t be surprised by more fitful, frustrating and fearful days in the meantime.”
Random Items:
Online data a gold mine for terrorists
Inside Al-Qaedas Hard Drive
Top 50 Chains by Systemwide Sales
Radical Restructure: The Only Way to Fix Intelligence
Candidates in Dead Heat Among Investors
Do You IMDB?
Quote of the Day:
“No persons are more frequently wrong than those who will not admit they are wrong.”
–Francois Duc de La Rochefoucauld (1613-1680)
