We have had three down days in a row and we are 45 S&P 500 points lower than where we were on Tuesday. While we were nearing an overbought reading, the magnitude of the downside has been a surprise to me. Especially since there does not seem to be much in the way of news.
We are nowhere near a good oversold reading as we have only had three down days. However, we are very short term oversold so we should see a bounce by Tuesday at the latest. The textbook way a market gets oversold is to go down a few days, have a relief bounce then go down for a few more days. We are likely nearing the relief bounce. Have a great weekend.