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Equities Are Oversold & Exhausted

Long
AMEX:SPY   SPDR S&P 500 ETF TRUST
Momentum continues diverging. Sellers could be done here because the vast majority expects significantly more downside. Volume confirms this picture as the chart shows. The SPY ETF’s volume diverged on a lower low yesterday. The same volume divergence was evidend at durable market bottoms and tops during the past few years. Hence, volume and momentum signals an oversold and exhausted market.

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