Ari Wald, CMT, Bullish On Oversold US Stocks: The Technical Analyst

Executive Director and head of Technical Analysis at Oppenheimer Ari Wald, CMT, was featured in The Technical Analyst on Wednesday with a contrarian outlook stemming from his take on the relatively high amount of oversold US stocks.

"Wald notes that the percentage of Russell 3000 stocks below 30 on the 14-day RSI has surged to a multi-year high (38%). He has found that S&P 500 returns since 1995 following such extreme oversold readings are followed by an average 4.3% gain over the next month versus 0.7% for the all-period average," reported The Technical Analyst. The chart above describes this pattern.

"The percentage of US stocks in oversold territory is at a multi-year high and, together with a jump in the VIX, could be viewed as a bullish signal." 

Read the full article here: US stocks at oversold extreme.