Fallon Financial Commentary: Nasdaq McClellan Oscillator at reversal lows Get the latest market commentary and stock trading ideas from Declan Fallon

Extreme oversold levels in the McClellan Oscillator have marked good short term bottoms, but a more significant bottom requires confirmation from other breadth and technical indicators. The same picture plays across the Nasdaq and NYSE.

With the Fed decision due today, taken with the relative position of these indicators, the short term response to the Fed reaction/statement should be favourable (but not necessarily so!). Whether it can sustain a positive response will depend on how much buying volume can be pumped into the market: