August 24, 2017

Near short-term overbought reading

Could we see a signal in the strategies (ETF and Sector) over the next few days? With the opening gap unable to close and a move to short-term “near overbought” status it certainly would not be out of the question. 

I am watching the 9000 level on the Dow and a move through that level could take the blue-chip index up to its next overhead resistance level around 9600 very quickly.

I will also be watching the support level of QQQQ at $29.25. 

The gap today lowers the probability of a contiued move to the upside over the short-term. I would not be surpised to see the gap close over the next few days. If that does occur, the market would be at another important level of support.

Just a few thoughts.

Have a great night!

Andy

Overbought-Oversold levels for December 8, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 65.7 (neutral)
* Dow Jones (DIA) – 65.4 (neutral)
* Russell 2000 (IWM) – 65.9 (neutral)
* NASDAQ 100 (QQQQ) – 67.4 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 64.7 (neutral)
* Consumer Discretionary (XLY) – 76.1 (overbought)
* Health Care (XLV) – 64.7 (neutral)
* Financial (XLF) – 72.3 (overbought)
* Energy (XLE) – 51.2 (neutral)
* Industrial (XLI) – 65.2 (neutral)
* Materials (XLB) – 69.7 (neutral)
* Real Estate (IYR) – 72.2 (overbought)
* Retail (RTH) – 76.7 (overbought)
* Utilities (XLU) – 52.3 (neutral)

Ultra Extremes (Insiders Page Only)

* Ultra Long (SSO) – 64.5 (neutral)
* Ultra Short (SDS) – 32.0 (neutral)

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