S&P 500 Still Oversold Despite Gains; Consumer Staples Now Overbought

Hickey and Walters (Bespoke) submit: Even after the two-day gains in the S&P 500, the index remains in oversold territory, although not at the extreme levels we saw at the end of last week.

The chart below highlights the trading areas of the S&P 500 along with its 50-day moving average and current price. When the index moves in or below the green shading, it is considered oversold (overbought for the red shading).

click to enlarge

One sector that has done extremely well in the last two days is Consumer Staples. As shown by the trading area chart below, it has now moved back into overbought territory.