Bearish Trending but Oversold levels

What is more important for traders? The bearish trend we are witnessing or the oversold levels that we see in the markets. The answer depends on the timeframe of trades. In the very short-term one should not be surprised with a small upward move of the markets. Most indicators are showing oversold levels. In the mid-to-long term the bearish trend trumps and unless we see a true reversal the risk remains to the downside.

Major Markets

Here is my summary call based on looking at moving averages and not accounting for the RSI oversold levels.

The above is based on the trending I track as follows:

SPX Sectors

Alternate Sectors

Magnificent 8

Strategy

It is clear the trending is bearish no matter what period we review. However, last week, prices for all but 6 of 35 tickers I track overshot their expected moves to the downside. And most short-term RSI levels look oversold for now.

I am going to wait and watch for a small bounce the next few days and then go back to shorting the market. Unless of course the short bounce turns into a reversal.