Various sentiment measures are extreme and suggest that a turn is imminent. “COT positioning is the most extreme in its history by some measures (net speculative shorts and net commercial longs).”
3 day RSI finished at its lowest level since the 1970s on Friday. On multiple time frames, divergence with RSI warns of a turn. On the daily, a sharp pullback is needed to correct the extreme oversold reading. Yesterday’s inside day warns of a potential turn as well. A rally through 1.7705 would signal that the short term trend is up.
