Rich Ross, CMT, Says Market Should Expect V-Shaped Bounce

Head of Technical Analysis at Evercore ISI, Rich Ross, CMT was featured in Bloomberg late last week with an optimistic prediction: chart patterns "now offer a compelling tactical setup for a textbook V-shaped reversal higher."

"The 7 percent correction was about 5 percent bigger than I thought it would be and I did not get out ahead of the recent decline, but I am getting out ahead of the tactical reversal with conviction," Ross said, according to reporter Richard Richtmeyer. The left side of the "v" can be seen in the chart above.

"[Last] Thursday’s plunge pushed the S&P 500 Index’s 14-day relative strength index to 18, well below the level of 30 that’s viewed as an indication the market is oversold. U.S. stocks have only been this oversold six times since 1990, and the recent levels were more extreme than during the depths of the 2008 financial crisis," wrote Richtmeyer.

Read the full article here: Technicals Signal V-Shaped S&P 500 Bounce, Evercore’s Rich Ross Says