Markets Report: when "bullish seasonality"?
Plus a new trade
Stocks rallied significantly from April-October. A pullback was long overdue. Breadth notably deteriorated by the start of this month, with multiple Hindenburg Omens being triggered. Artificial Intelligence stocks, which led the rally, are starting to deflate. This is the first meaningful pullback in AI stocks since the April bottom:
On Thursday, almost 23% of NASDAQ 100 stocks were oversold (RSI below 30):
Similarly, almost 21% of NASDAQ Composite stocks were oversold on Thursday:
SPY’s volume spiked. This tends to happen closer to bottoms than tops:
QQQ volume also spiked to the highest since April:
Aggregate Put volume spiked:
As did SPY’s put volume:
