THE OVERSOLD

Equities way oversold as of the close Friday with an RSI (2) reading on the SPX at 1- also note the SPX is about 10% under the 10 day SMA - so a bit over done to the down side.

Market internals - ways over done to the downside with a 5 day moving average of the advance/ decline line near a negative 1,500- and one doesn't see those kind of over sold numbers often.

The VIX - not so frightful as we are just under 50 and only about 8% above the 10 day SMA.

The NAZ/NDX continues to act way better than the SPX as it was about flat yesterday while the SPX lost 9 points or well over 1%. Not that many financials in the NDX 100- to be exact there are zero and now that is a pretty good thing.

Real Estate and REITS had a monster rally in the final 2 hours (+6%) and I suspect that was all about some week end short covering and that area may be ripe for shorts on Monday.