I hope that we are returning to a more normal market, where the market is once again a two way street. In that type of market oversold and overbought readings should be much more valuable.
In the ultra short term the market is oversold, as 3 of the past 4 days have been down pretty hard. My favorite measure of oversold is the 10 day moving average of the NYSE A/D Line. On that basis the market will not be maximum oversold until late next week. If we were to head lower over the next week we would be maximum oversold right at the turn of the month.That setup would offer offer a decent long side opportunity.