Last week, although the market was already deeply oversold, prices didn’t manage to rebound successfully. Friday, the stock market found a tentative support at 3800 and rebounded to close almost unchanged. There is still a valid scenario for a recovery up to 4200 to relieve the oversold conditions of the stock market. Internal momentum as measured by the cumulative advance/decline line continues to be weak although a slight positive divergence may emerge confirming the short term upside potential. Options traders continue to buy puts as measured by put/call ratios that stand at near historic buy levels.

Very short term oscillator	Negative -
Short term oscillator	Negative -
RVI trend	Negative -
Trend short term (5 days)	Down ​
Trend mid term (8 days)	Down ​
Differential of trends	Down ​
Risk profile	33 (scale of 1 (low risk) to 100 (high risk))

 

Next update: Wednesday 8th June 2022