Last night it opened 12 pts lower without any selling...then went sideways 'til the opening and then rallied all day. If anything, it's overbought.
Actually, this is a sign of an "oversold" imbalance on a daily basis.
It's very much like throwing a basketball into the deep end of the swimming pool...the only way it stays below the water line is that you have to apply constant pressure on the ball to counter displacement. But once this same constant pressure is released (using one hand instead of two), the basketball not only moves towards back to the surface, but it can actually move quickly back above the water line (both hands are released) to about the same height in which it was held under the water line before once again floating on the surface (neutral balance between buyers and sellers).
Near term (hours) we're compressed, short term (that of a week) we're also compressed. Intermediate term (2-3 weeks), we're pretty much neutral right now.
Place your bets...fundamentals say down, technicials say bottom.
Fib
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