Almost All U.S. Index ETFs Now in Oversold Territory

After large declines since the Fed stole the Christmas rally, the majority of US index-tracking ETFs have moved back into oversold territory (more than 1 standard deviation below its 50-day moving average). NYC, ISI, QQQQ, MDY, IJR, IWM and IWC are currently the most oversold. The only two that are not oversold are the mega-cap DIA (tracks the Dow 30) and OEF (tracks the S&P 100) ETFs.

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Comments

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Can you please explain the flag system. I am sure it is simple,but I can't seem to figure what is undervalued.

[Kunst]

So anything 1 SD below its 50 day MA is oversold and due to rise? By that standard, I'll bet there were a ton of screaming good buys in late 2001. What goes down may go up, but not necessarily immediately. Sometimes what goes down keeps going down, for good reason..