There are several indicators that can be used to determine if stocks are overbought or oversold. The two I like to use are the Commodity Channel Index (CCI) and the Bollinger Bands (BB), both set to a 20 period. I also like to look at the stock being three standard deviations away on the BB
Are we oversold?
In a word, no. Not even close to being oversold. As the $SPX has teetered around the 1115 area recently it has given the overbought and oversold signals a nice rest. Shorter-term moving averages have corrected over time and frustration levels have risen, until today. The broader index broke the 200 SMA as well as