Stock Market Update
Price action prevails despite bearish sentiment that usually works as contrarian indicator.
They say price action is primal, and today's trading certainly validated that. Yesterday, I highlighted the excessive pessimism with three charts drawing parallels to prior bounces over the last three years. However, the key divergence in 2025 was the disconnect between this pessimism and actual oversold conditions, and as I mentioned yesterday, click here for the publication, one particular indicator was a significant concern.
Today, we will delve into that indicator, examining its implications with charts for some securities analyzed during the weekend; including a volatility analysis.
SPX