“On today’s close, our short-term Pressure Factor hit an extraordinary oversold -169 [normally, -80 is an “extreme” oversold reading]. There were only six occasions in the past 60 years when the Pressure Factor has dropped below -160. Here are those initial dates: June 9, 1953; October 19, 1987 (after Black Monday); October 27, 1997; February 27, 2007; December 1, 2008; and June 4, 2010 (last summer). None of those instances saw the S&P even 1% lower one week later. Only one instance saw the market negative one month later – last summer which marked the correction bottom. And interestingly –perhaps coincidentally– 5 of the 6 saw the market up over 19% twelve months later. Such oversold extremes typically do not market the beginning of a bear market.”
I subscribe to a few services and this is a comment made from on of the ones I subscribe to. I have to caution you though these are of course not 100% predictive! But something to think about if you consider selling into a panic.
Of course…..as long as you have proper money management in place there would be know reason to panic.