Conditions Neutral

After last week’s hard sell off stocks and indices are oversold. Of course in a downtrend oversold can become more oversold. So far however, only the NASDAQ has broken down. Unless other indices follow we cannot count the current environment as a downtrend. Stocks could potentially still pull back higher. If they are going to, they need to build a base at the current level, which will help repair some of the technical damage incurred last week. Scans today were not overly negative, nor were they overly positive. We start the week with fairly neutral conditions and we have no bias as to what will develop next at this time.