April 28, 2017

Archives for November 2009

Short-Term Reprieve Could Be Close

All of the major indices I follow have now moved into a short-term overbought state. Typically, this type of short-term state signals that a reprieve is highly probable sometime during the next 1-3 days. One thing that should be pointed out is that during the week of options expiration the market tends to sway towards the bulls so we could see the market stay afloat for a few more days. However, the 'very overbought' NASDAQ 100 (QQQQ) is near a major level of resistance at $44.75 so I would expect to see a fight to break out between the bulls and bears if indeed the tech-heavy QQQQ pushes to that level. A move to the the $44.75 level would also push the RSI (2) to a short-term extreme state which would also signal that a move to the … [Read more...]

Trade in the Making?

The major benchmarks are sitting well within neutral territory, but I expect that to change as the week progresses. Friday will be the BIG DAY as the Nonfarm Payroll Report will be released and the market will certainly respond as it typically does after the release, with a sharp directional move. I am currently watching 1020 level of the S&P (SPX) and the $41.00 level of the Nasdaq 100 (QQQQ). Both levels are areas of strong support and given that the all of the major indices are near short-term oversold levels I think a push lower by the bears will certainly be challenged by the bulls. A decline to oversold levels at an area of strong support is often a high probability trade. We will see if/when the times comes this week as we … [Read more...]