Futures are trading up a bit and are a hair above fair value. Markets are way oversold with RSI (2) readings of 4 on SPX and 6 on the NAZ.

Dick Arms on realmoney.com looking for a turn:

"The best that can be said of yesterday's market is that after the initial decline, it held, just above the November lows. The weakness late last week, and continuing into this week, has been enough to put the averages below the October lows, and therefore negate the possible inverse head-and shoulders we were hoping to see. But we are still trying to make a stand at the old lows. In the meantime, it is interesting that even the most discouraging news is having a smaller effect than it would have had in October and November.

One positive is the very oversold condition of the Arms Index moving averages. Because of the very big number that went into the series last Thursday, the five-day and the 10-day remain at extreme levels, suggesting a rally is imminent. Also, the longer-term indicators suggest we are in an important basing area.

Another encouragement in the midst of despair is the lack of heavy volume to the downside. The slide is due to a lack of buying rather than heavy selling. That continues to imply we are likely to soon turn higher."

Some good links:

TICKER SENSE with a look at SPX 800;


Telling when the economy is improving;

The RIGHT thing;

$30 B to avoid failure;

IF only;


Best and worse since 11/20;


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