July 28, 2017

OIH determines the fate of the market

OIH ultimately decided the performance of the market today. Most of the major indices looked good today as we moved into afternoon trading but as soon as oil spiked higher the major indices decided it was time to take a few profits off the table.

Jim Rogers, but I do think a jump in oil closer to Mr. Pickens predicted $70 a barrel could lead to the correction that many of us have predicted for several months.

QQQQ remained in oversold territory today and is still below Thursday’s low which could be a sign of things to come. I stated yesterday how I would not be surprised to see a move into “very oversold” territory before we see a bounce. Although, given the reading on one of our more accurate short-term measures, I would not expect to see a much more of a move to the downside before we see a decent bounce in QQQQ. Possibly an intraday move into “very oversold” before the bounce begins. We shall see soon enough.

Oversold/Overbought levels for January 23, 2007

  • SPY – 58.8 (neutral)
  • DIA – 55.2 (neutral)
  • IWM – 52.6 (neutral)
  • QQQQ – 26.7 (oversold)
  • OIH – 73.5 (overbought)
  • GLD – 78.6 (overbought)

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