« Investors Haven't Been Here in a While | Main | Super Bowl Countdown Begins »

Market Now Solidly Oversold

Another round of extreme selling today has pushed the S&P 500 and seven of ten sectors into oversold territory at this point.  As shown below, three of the ten sectors are at extreme oversold levels -- Consumer Discretionary, Consumer Staples and Energy.  As of mid-day, the Technology and Utilities sectors are the only ones still above their 50-day moving averages, but Tech is dangerously close to breaking below.  It's ugly out there, plain and simple.

The pullback over the last three days has left just 33% of S&P 500 stocks above their 50-days.  As shown in the chart below, this is right near levels where we have seen a bounce over the last year.  If this doesn't hold, we'll be at levels not seen since 2012.