To gain an edge, this is what you need to know now.

Rally Attempt Fails

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • The chart shows that the stock market was attempting a rally in the early trade.

  • In the Morning Capsule we wrote,

  • The chart shows that RSI is very oversold.  When the market is this oversold, rallies can easily occur.

  • The pattern that RSI has traced often leads to a lower market after a quick rally first.