looks like a rebound

US stock markets have experienced one of the worst week in 2016, especially when January is seasonally strong. There are so many negative factors in place, namely oil collapsing to 12 years low, and China market volatility, and Middle East tension, Fed hiking rate etc. All these described a very pale picture of global economy, stock market investors are no surprised very nervous, and results in market selloff.

However over the years stock market have been climbing up over all these worries, such as Greece crisis, European crisis, US government shut down, etc, every time the hard sell down time is normally better opportunity to get exposure. After all US economy is still growing and based on macro data, it certainly not in recession.

Technically speaking, the market is very much oversold in the short term, there is very few stock still holding their 50days moving average and 200day moving average. VIX is at one year high which normally revert back to its means. The global market risk indicators are also at high level, and fund flows indicators are very negative, which indicates that investors are very nervous and further stock drop is likely priced in. it might be a good entry time this week to gain exposure in stock market.