The US stock market is in a state of "dysfunction"? Oppenheimer: A great opportunity to buy when the S&P 500 hits the 200-day moving average.

O'Brien Asset Management noted that the S&P 500 had fallen to test its 200-day moving average, which they saw as a potential buying opportunity for bullish investors seeking a quality entry into the market. The firm said, "We will be watching for signs of a short-term bottom in the next few days. Day traders may want to consider buying the S&P 500 and taking a stop at the close below 5725 (the 200-day moving average)." In addition, the investment firm further commented, "The S&P 500 has pulled back to support at the 200-day moving average of 5725. The lackluster close on Tuesday suggests some follow-through selling this week. However, we believe a relief rally may occur before further selling later in the month." As of Thursday, the benchmark S&P 500 traded at 5,755, down 6.3% from its record high of 6,147.43. Moreover, as noted by O'Brien, the index traded below its 50-day and 100-day moving averages and showed signs of rebounding from its 200-day moving average. From other technical perspectives, when checking the relative strength index (RSI), the broad market average has been in oversold territory, currently at 39.45, and earlier this week as low as 33.35.