Have you noticed that stocks aren’t getting oversold?
So not only did the new lows list go quiet, since peaking almost 3 months ago, but stocks aren’t even seeing oversold readings.
The sellers appear to be exhausted.
We define oversold conditions as a 14-day RSI below 30. It’s incredibly informative.
If you think a stock is in an uptrend and it’s hitting oversold conditions, then it’s probably time to reevaluate that thesis.
In uptrends you see overbought readings (RSI >70), and more importantly, a lack of oversold readings.
Look at the S&P500 not getting oversold at all during the Spring and Summer months: