The Dow Jones Industrial Average has tumbled 2,587 points, or 7.1%, amid a seven-session losing streak. But as history suggests, oversold doesn’t necessarily mean over.
The Dow Jones Industrial Average’s seven-day plunge has produced the most oversold reading in a key technical indicator in nearly two years, but as history suggests, oversold doesn’t necessarily mean over.
Keep in mind that oversold readings can last for weeks, and many technical analysts actually believe that the ability to produce an oversold reading is a sign of a downtrend’s strength.
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