NYSE Composite And S&P DOwn From Recent Highs

 | Aug 02, 2014 01:04PM ET

Both the NYSE Composite and the S&P 500 are down from their recent highs 3.7% and 3.2%, respectively. Although the magnitude of the declines is not large, the indices are looking oversold. The relative strength index, the MACD indicator and the stochastic indicator are indicating oversold levels as well. It should be noted that the MACD is less useful as an oversold market indicator as it is unbounded. The MACD is most useful in determining market turning points when crossovers occur with the MACD line (green line in bottom pane) and the red signal line.