ReturntoSender Saturday, 10/04/08 09:08:01 PM Re: ReturntoSender post# 6759 Post # of 12546 Long Term Market Breadth Indicators for the SOX. Crossing over the green horizontal lines are indicative of oversold conditions that could lead to a rally. Crossing over the red lines is indicative of overbought conditions that could lead to a sell off. In either case the market might recover from these conditions only to head further into oversold or overbought territory. It is therefore important to look for positive or negative divergences. Positive divergences were seen at the last major market bottom in October 2002 where most market breath indicators had improved readings than those seen at the previous bottoms even though the market was actually much lower.