Wildly Oversold To Mostly Overbought
It was a late-day selloff that was widely anticipated: we went from WILDLY OVERSOLD to MOSTLY OVERBOUGHT, in 6 trading sessions!
But that's the way things are these days. We had a 15 percent rally in the S&P 500 in theose 6 trading sessions, more than happens in some years.
So don't try to blame anyone, though the outrage over AIG paying bonuses to many of the people who caused the CDS debacle was a constant backdrop to today's trading.
While some financial names like Citi held up well, other stalwarts like Goldman and Morgan Stanley were turning down mid-morning; insurance stocks also weakened late in the day.
Two other leadership groups last week—techs and consumer discretionary—also sold off right after 2 PM ET.
Meantime, commodity-based stocks continued to outperform; copper hit the highest level since November, while oil closed near the highs for the day and looks like it wants to make a run at $50 short-term.
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