Blog Post: 1,032 new lows among US stocks 83 fewer than Monday; Nasdaq 100 stocks are very oversold and primed to bounce? See data on Bollinger bands.

GMI0/6
GMI-21/8
T210813%

I track after the close the percentage of Nasdaq100 stocks that traded intraday below their lower 2.15 Bollinger bands. Such a reading is extremely oversold and where stocks often find support. The past 3 days 86-94% of the Nasdaq 100 stocks were that oversold. The last time such a run occurred was at the bottom of the Covid rout on March 12,13 and 16, 2020, (89-96%). In fact, QQQ itself traded below its lower 2.15 daily BB on Monday and Tuesday. This suggests to me the market is primed to bounce on Wednesday if the Fed’s announcement is well accepted. Here are the stats for the Nasdaq 100 stocks from 4/14 until 6/14. (I know I missed 4/26.)

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.