The Black Box

[Namiar]

If you review Nasdaq market internals over the past 6 days, and particularly the last 3 days, one will note huge imbalances.
My "custom" short term overbought-oversold indicator is at an epic oversold point right now. I am not really sure what to make of it, but my ST scalping model has me full margin long the NDX (via Profunds Ultra OTC fund) as of close today.

In reviewing my model back to 1996, this indicator has only been lower once in 1998 (August 31 - Asian Flu related up 6.6% the next day)), 4 times in the days immediately following the 9/11/2001 episode. 4/14/2000 (initial unraveling of the bubble) had a reading that was very close and NDX was up 10% the next day.

Yet it feels like the selling has not climaxed yet . . .