The DJIA lost 99.99 points on Monday to close at 17,180.84 while the S&P 500 was lower by 12.70 to finish at 1,989.62. The Nasdaq was lower by 48.43 points to close at 4,605.15 and the Russell 2000 was down 12.15 to close at 1,140.29.
The Russell 2000 is now down 2% in 2014.Must Read: Jim Cramer’s 5 Best Stock Picks for the Biotech Sector
Since oil related issues are at the forefront of this stock market, it appears that oil stocks and the iPath S&P Goldman Sachs Crude Oil Trust Index ETN (OIL) are nearing extreme oversold levels for the first time since October 15, 2014.
The OIL volume on the daily time frame has been nothing short of incredible. This past Friday traded a huge 3.7 million shares and that was followed by an incredible 5.2 million shares on Monday.
This was the largest two day volume in over 2 years. The question becomes, is the oil market in the midst of a capitulation downside move? Only time will tell, but if the oil markets open to the downside on Tuesday, we will have an extremely oversold signal.