We're Getting Oversold, but Can Stocks Bounce?

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Our View

There were some great rallies to sell yesterday, but the indices are extremely oversold. 

I put 5080 in as one of my support levels in the Lean and 5078.75 was the low. Am I surprised at the rally? No, you could see the NQ up-ticking while the ES was down-ticking — notice down below how the Nasdaq breadth was significantly better than the NYSE breadth — and prior to the headlines, both the ES and the NQ were bid. 

Additionally, after the fast headline drop, both indices bounced right away. Like I said in the chat — MPRO: Dboy: (3:13 PM): “algos adjusting to oversold conditions. All I know is every time traders get bullish into the rallies they fail.”