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Stocks - The speed and violence of last week's decline caused the S&P 500 (SPX) to reach a rare level of near-term oversold without doing any real damage to the trend higher. If the equity market is going to bounce (even if temporary), it should do so from near current levels. The strength of the bounce will be key in determining the next more significant direction of equities.

Volatility - The Volatility Index has bounced back to prior resistance and has reached into extreme overbought territory from which prior equity market bounces have emerged.

Bonds - The yield on the 10-year note has surprised many by declining to 4%. This should help give equities a bid as speculation of asset allocation switches emerge.

Currency - The U.S. Dollar Index has reached into extreme oversold territory and appears poised to bounce. There is a possible positive divergence setting up because the current oversold level was reached without the price making a new low. If there is a turn coming, it will be evident over coming sessions.

Oil - Despite the media focus on the OPEC production cut and the resulting price jump, the spike did nothing to change the recent downtrend. It is important to remember that OPEC cut production because of concerns of oversupply in the market.

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