Lawrence G. McMillan

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Dec. 4, 2021, 2:51 p.m. EST

These stock-market signals will tell you when it’s safe to buy again

By Lawrence G. McMillan

The S&P 500 index (SPX) has plunged over the past week—ostensibly on fears of the new omicron COVID variant—but really that was just the catalyst that exposed weak internals of this market: breadth, put-call ratios and new lows.

We will go over each of those individually, but this market is already showing signs of becoming extremely oversold, even though the S&P /zigman2/quotes/210599714/realtime SPX -0.80% is not down that much from its highs.

However, oversold does not mean buy, and oversold markets can continue down for some time before buy signals are confirmed.

/zigman2/quotes/210599714/realtime
US : S&P US
4,446.82
-35.91 -0.80%
Volume: 709.18M
Jan. 21, 2022 10:28a
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