Okay, we are close to a bounce.
Pretty much everything is oversold.
All of 3x-leveraged ETFs I follow are on sells and oversold – eight out of eight – TQQQ, TNA, FAS, LABU, ERX, SOXL, FNGU, UPRO.
That does not happen often. Last time they were all together all at once (in August), TQQQ went from 55 to 64 in the next four days and to 69 in six.
But SPY is the indicator to consider this time (see the chart below).
SPY is at a level it rarely sees, five times actually since May, and each time signaled at least a bounce if not tomorrow (Thursday), soon…
Given that SPY is a broad measure of the general market and a big-money index, when it bounces it will take most of the market with it so it might be prudent for swing-trading shorts to tighten stops or take some profits here.
Regardless, a bounce now will still be a bounce to sell again.