ARE WE OVERSOLD ENOUGH

I don't need to write about how oversold the market are after yesterday afternoon's selloff. One can go here and here and find its all the same, the market is more oversold than it has been since blah blah blah.

Dr. Brett, on his site has this statistic:

"Finally, a total of 15% of NYSE issues are trading above their 20 day moving average. The last times we've had readings below 20% have been October, 2005; April, 2005; August, 2004; and May, 2004. Those were excellent intermediate-term buying opportunities."

What Dr. Brett doesn't mention is that there were statistics one could have gotten as early as Monday that indicated the markets were big time oversold. In other words, oversold has become even more oversold as the market has just gone straight down. The VIX above is now way oversold, more than it has been since, yes, blah blah blah

This morning, it looks like another shot for the shorts as the SPX Futures are up 6 which is a replay of yesterday morning. I expect the gap to be sold and we will see what happens from there. After all it is Friday and the markets rarely make much headway on Fridays.