The 4hr RSI did dip into oversold yesterday and bounced right back from it. But as you can see this morning in the futures it did not produce that same effect of a large move up like it has so many times in the past. This change in pattern is a tell-tale sign to me that the trend is changing (or already has?).
I'm thinking today is kinda a pause day where we don't move up too much or down too much. The 4hr chart can then reset some, like get back to neutral, then rollover again. This week is critical for the bears. They need to take the bulls by the horn and tackle them. There's the reading of the FOMC meeting from last month today at 2pm EST, so that's another reason for a "pause day" as trader wait to see if anything new is added.
It's not likely going to do anything to affect the market as it's really about how the charts are lined up, and they are in favor of the bears now. If this goes as planned then we will continue this move down tomorrow and Friday as the FED have nothing new to say, which should disappoint the market and simply allow the chart alignment to work properly. I'll keep it short and end here. Have a bearish day.