And Now, the Real Dance Begins

The S&P 500 is now looking for some low-volume bidding as the oversold technicals scream at us from the chart. But there's a huge test over the next 11 days.

Market outlook:

• Futures UP: S&P +43bps, Nasdaq +52bps, Russell +98bps

• Bond yields tick slightly higher but remain near recent lows; 10-year at 4.23%

• Oil attempts to stabilize after hitting six-month lows; WTI crude rises 1.1% to $66.76

• Bitcoin plunges to $76,700 on Monday, retracing post-election gains and filling the November election gap

• Occidental Petroleum (OXY) receives downgrade as Raymond James lowers Buy rating from $81 to $64 price target

• Mortgage giant Rocket (RKT) buys Redfin (RDFN) for $1.75B ($12.50/share); aims to connect Redfin's 50M monthly visitors with mortgage products

• Delta Air Lines (DAL) cuts Q1 profit forecast by over 50% on softening domestic travel demand; stock tumbles 13% after hours

Dear Reader:

This morning, I noticed that the S&P 500 ETF (SPY) has pushed into oversold territory. The Relative Strength Index has hit around 30, and the Money Flow Index has hit 20. The chart below shows this.

Why does this matter?

There are two important things to consider in this envir…