It should be obvious to all that the markets are oversold. Today's daily standard deviation reading on a 20 day average view came in at -2.96, deeper than the -2.50 we set two days ago. Consider however that volatility levels dropped significantly over the past three weeks so it doesn't take much to get oversold or overbought.
I was curious what the numbers would look like on the 4 week scale. What I discovered might interest you.
On the 4 week scale, we are at a -1.38 standard deviation, almost the level where the last four spikes in 4 week standard deviation hit. At 195, we would be at -1.43.
So seeing this, of course I was curious to see what happened with price after each of these spikes down.
Here is the analysis:
Post a Comment