Market breadth is rebounding from oversold levels and, at this rate, will need a few more days to reach overbought readings. For the SPX, the real challenge begins in the 3955 - 3965 zone. At this time, it doesn't look like the index will be able to break above without a strong reversal in AAPL and CSCO, which have been the main drag on the DJIA as well:
One of the longest oversold market breadth streaks finished with the expected panic selling at the open on the 23rd.:
Market breadth is getting close to reaching max number of consecutive oversold days:
which may culminate in panic selling.
Pre-market action suggesting that market breadth is likely to reverse from deeply oversold levels, providing support for higher prices:
Something has to give. The SPX continues to flatline in the defiance of continuously deteriorating market breadth, sliding further into oversold territory:
