📈 Buy Signals

This is what I'm seeing.

Oversold Signals

There is one signal that is becoming abundantly clear on the indexes that is important to understand.

Looking at the indexes on longer term timeframes has been very helpful lately with the volatile moves that we have seen.

What I’m seeing right now is that on the 4-hour chart, we are reaching oversold levels.

I also marked off every other time in the past that we have dipped into oversold territory to see how it has fared. You can see that these readings tend to mark bottoms.

How to Use This Signal

There are a couple things you need to keep in mind.

First, this is a 4-hour chart, so these things take some time to develop. It doesn’t mean that the bottom is in right now and we will stop dropping immediately.

Second, we have some key earnings coming in that have the potential to move the market. WMT earnings this morning are important in understanding the strength or lack thereof of the consumer. Finally NVDA earnings on Wednesday are massive and will absolutely move the indexes.

For more analysis of what I am seeing in the market right now and the trades I am putting on, watch this video: