Tuesday Outlook: Oversold Bounce

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 |  Includes: IEF, IWM, IYR, IYT, MDY, QQQ, RSP, SPY, TLT, UDN, UUP, VTI, VXX, XHB, XLB, XLF, XLI, XLP, XLU, XLY
by: David Fry

October 5, 2009


OVERSOLD GOTCHA CHEERLEADER

The rally today was expected given how oversold short-term conditions had become, not to mention short-term memories. But, again the caveat remains—low volume. GS upgraded more bank stocks today, and this combined with a slightly better than expected ISM report was the slender reed bulls needed to squeeze shorts.

The fuel stocks need should come from earnings reports and those will start to roll out this week.

Volume was light and breadth positive enough to ease oversold conditions.

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