$SPX Bearish Extreme Signals Bounce, $GOOG Oversold Turns Bullish

SmartReversals
04-06

Rare levels of bearish sentiment in $SPX historically lead to relief rallies and often precede major bottoms, while $GOOG shows a bullish stochastic crossover in oversold territory—typically a strong setup for a rebound.

1. $S&P 500(.SPX)$

Over the last 30 years, we have seen this level of bearish sentiment (55%) only a few times. Relief rallies have followed without fail; even when those rallies were short-lived

A major bottom materialized few weeks after. $SPDR S&P 500 ETF Trust(SPY)$

2. $Alphabet(GOOG)$

Bullish stochastic crossovers in the oversold zone (at or below 20) usually precede solid bounces. 11 successful cases and 2 exceptions (2022) in 10 years.

Google is one of the stocks constantly analyzed in my Trading Compass, with price targets and invalidation levels👇.

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