Oversold rally expected but at important support...

Since last post in August of an overbought signal, the major indexes consolidated with minor pullback before heading higher. Did get another overbought signal by mid September which this time resulted in a larger correction. This time the stock market is getting its first oversold signal since mid to late July...so it's being a quite some time which indicated an uptrend momentum for the past few months. So a rally is expected at this level here but an important support level have been breach downward in some indexes (Nasdaq, Russell 2000, and Nasdaq 100.) The Dow and SP500 are at their support levels and haven't broken downward though. If the major indexes can hold at current level this week then an oversold rally is expected but further breakdown lower could indicate another leg down for the stock market. So watch the SP500 to hold at the 1420 to 1430 level  and also for the other major indexes.