The SP500 is not overbought while around a 920 support level.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1WFRo6DwZ3zB19rfK4NuHSpwNTr37WOnSxH7JHhQE_m-q8ZsjudmqIy0YNnlZKpzxZ3yNQaO5ESIe429L9Nl-Z7zVulJWnVnR_AyV1vuj0YsiYsUdRcsnCcHqraz3PnJ8vHjVcy5fMnI/s400/sc.png)
Then there is the VIX, which acted accordingly and retreated from the 50 SMA.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTMxzObnUVOgs_XEUnB81nv5mEqvEu5nkCBd3SAhyphenhyphenEXrKHae_mn-w1QYEWWNgV6pn1831tn6IlOr45qnUynVD5FkOEfbMSzPsU1nrIjR5ULDN5uDACFrfcoJs-NTb9oIizyjpM2hZf5fQ/s400/sc-1.png)
The VIX is approaching oversold territory, however the possibility for it breaking down looks real. A review of the VIX action from 1999 to 2003 indicates the VIX low to be around 20. I think it is very reasonable to expect this from the VIX, as stability continues in the financial markets.
To me, this means to be a buyer, and that is exactly what I was/am doing. (as indicated through my previous post)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtUuzmyTa3AGt_fn07wOYVb-AAnhS94u1_-YXZXD4nbMES3sssjLYDPPfNUMgNzGqq7kScEwDnK_hF3oXQPQD-llCQGPCkaRbAexWa6k-5WhF6AiVctt9HsEuIaex39rxACk2DpklgqhM/s400/sc-2.png)
Make no mistake, the SP500 may very well test the 62SMA. But if it does, I will utilize the majority of my cash to purchase stocks
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