dow, page-35

I guess as usual in this debate it all depends on your timeframe. If you're a long term investor then its probably a bit risky to committ funds at this point. If you're a day trader who moves in and out of the market, short and long, then going long at the bottom of last nights bounce off support by the US markets would have been a profitable short term move. If you're a position trader, usually several days at least, then being long is high risk atm. Yes, the us markets did bounce off support last night but that support is also the neckline of a very bearish head and shoulders formation. The daily candle is still red, indicating the bears are still in control. A bounce of some measure from that level is predictable, the question is did the bulls regain control? What is the consequence for long, position and day traders of a fall from that level to new support ? If long or short, where to put the stop loss? How much to risk? If you get it wrong, can you come back to trade another day?

Gann45, you take positions mostly, I mainly day trade atm, grahod I don't know. Whether a market is oversold or not, if that term has any real meaning, means different things to each of us because of our time frame. Personally its not a measure I rely on for trading although I do check out the rsi etc from time to time in my contemplative times.

cheers!