Oversold Markets and the Technical Search for a Bottom

The video tutorial discusses the significance of individual stock performance during market declines, highlighting how stocks can signal both the start of selling and potential market bottoms. It examines the S&P 500's recent lows, noting that a significant percentage of stocks hit new four-week lows, indicating extreme selling pressure. However, recent data shows a reduction in stocks hitting new lows, suggesting a slowdown in selling pressure. The tutorial also explores the tech sector's performance, focusing on the Relative Strength Index (RSI) as a tool to measure market momentum. The RSI for the NASDAQ Composite recently hit extreme oversold levels, indicating volatile selling pressure. Despite ongoing selling, the RSI's positive divergence suggests a potential market bottom is approaching.

In what way does the current selling pressure compare to previous market declines?

What does a positive divergence in RSI suggest about the market's future direction?