Markets Are Due For an Oversold Bounce

I’m not about to get long in a big way, but I feel it’s important to take off the bear glasses every once in awhile and see if the market is telling us that it could bounce. No market goes any one way forever and 6 wks of declines and a very bearish twitter feed is telling me it may be getting crowded on the short trade.

Medium term I’m very bearish, but short term I’m giving the bulls the edge.

Below are 3 international markets that illustrate just how weak the global picture is right now. At the end of this post is a market video update that shows many market internal charts that are reaching extremes. Either a market crash is coming or a potential bounce that should be short lived.

TSX – significant uptrend support has been broken, most likely caused by the recent weakness in precious metals.

Nikkei – this market hasn’t been able to get back on it’s feet after the earthquake disaster. Look how the -DI is so strong with a rising ADX and this is in a strong downtrend.

KOSPI – this was a huge winner of the 09′ lows and has recently broken through support that goes back to 07′ highs.