Oversold

Is a word that a lot of people mention when the market drops quickly, it is a term that has come to mean “down so much it has to bounce”. Of course that statement is only based on opinion which doesn’t help us very much. The market was deeply wounded on Friday and the futures are indicating an early bounce, how far a bounce takes the market is anyones guess, but the most likely level of resistance will be found between 137.00 and 137.50. I am skeptical that a rally will develop into anything more than a bounce, but I will trade what I observe and go slow. A strong defense is critical during uncertain times.