With Damage Done, We're Heading Toward Oversold

Well, at least we're heading toward an oversold reading. But this oversold reading isn't as clear nor will it be as easy as the late-May oversold reading. The main reason is that a lot more damage has been done.

Another reason is that the oscillator will be oversold sometime between Wednesday and Friday. Yet the 30-day moving average of the advance/decline line is due for a bounce beginning Tuesday and it says its bounce will be over by Tuesday of next week.

The timing of this is curious as always. Wednesday is the day we hear from the Federal Reserve. We'll be oversold between Wednesday and Friday. Then there is the end of the quarter coming up. Mark-ups often begin a few days prior to the end of the quarter. The quarter ends on Tuesday and therefore, an end-of-the-quarter mark-up period would start late this week.

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At the time of publication, Meisler had no positions in any stocks mentioned, although holdings can change at any time.

Helene Meisler writes a daily technical analysis column and TheStreet.com Top Stocks. For more information, click here. Meisler trained at several Wall Street firms, including Goldman Sachs and SG Cowen, and has worked with the equity trading department at Cargill. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback; click here to send her an email.