Are We Oversold Enough?

You would certainly think so given the poor start of 2008. But, so far no extreme oversold readings have been triggered at least in the T2108:

At the bottom of the chart, I have used a simple oversold/overbought indicator to make this point. Green represents oversold conditions (therefore a potential buy) and red signals overbought conditions (therefore a potential sell). Ideally, you buy on the green spikes and sell on the red spikes. Again, extreme readings in this indicator are most useful.

As I mentioned back in the August 2007 Q&A, the T2108 is a proprietary indicator only found through Worden. However, there is a free workaround....[READ]