OBOSS Market Timing 08/04/11 ‘OBOSS at -2.55′

OBOSS closed at -2.55 which is considered extremely over sold.  This reading correlates to some of the worst days during the 2008-2009 bear market.  We were watching for buying opportunities on TNA between 55-59 today and that range was taken out.  This is why you want to scale in slow if you get an early start (before OBOSS is less then -2.0).  Now that we have a confirmed extreme over sold call on the market, TNA is a buy at this level (54) and lower.  The target snap back rally / relief rally is 72-77.  This is also near the area where TNA initially broke down earlier in the week.  Whenever OBOSS gets this extreme, a relief rally is in the very near future. Since the market is in a down trend it is prudent to take profits as they develop.

We have an official OBOSS buy indication.

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