Failed short term oversold leads to medium term oversold

The short term oversold signals of the past months were very weak as the market sold off more afterward. Now the stock market is at medium to long term oversold levels similar to the bottom that occurred last summer. As from the beginning of June there should likely be a short term rally that eventually turns back down for a final lower low. We see what happens in the weeks ahead as this could set up for another good medium term rally in the coming months.