The major indices are all hovering near their 50-day moving averages. That heavily watched average is where a lot of traders will likely take action. We’re also in oversold territory, based on my stochastic indicator. As I see it, this is a good risk/reward area to start buying. Of course, I’ll be waiting for some bullish reversal candlesticks before I get truly interested. But I wouldn’t be surprised at all to find a lot of those very candles have been formed by the end of the day today.
