August 17, 2017

S&P 500 advances to test 850

Back to a neutral state and back to the closely watched 850 area in the S&P 500. While the shortest-term measures are nearing overbought as you can see in the overbought/oversold readings below all of the ETFs I follow are firmly in a neutral state. What does this mean over the short-term? It means that the likelihood of a short-term reprieve looks likely (1-3 days). However, I am not necessarily counting out the sustainability of this rally as we head into Thanksgiving. If this is indeed the beginning of a move that is more intermediate-term then a continued to push over the next few days should be seen. As I said before, the 850 level of the S&P is a critical area and it should be very interesting how the market reacts over the next few days.

I will be back later tonight with a short post on how the market historically reacts around the upcoming holiday.

Stay tuned!


Overbought-Oversold levels for November 21, 2008

ETF Extremes Options Trading Strategy

* S&P 500 (SPY) – 52.3 (neutral)
* Dow Jones (DIA) – 53.4 (neutral)
* Russell 2000 (IWM) – 48.4 (neutral)
* NASDAQ 100 (QQQQ) – 52.8 (neutral)

Sector ETF Extremes Options Strategy

* Biotech (IBB) – 38.5 (neutral)
* Consumer Discretionary (XLY) – 54.2 (neutral)
* Health Care (XLV) – 36.4 (neutral)
* Financial (XLF) – 43.4 (neutral)
* Energy (XLE) – 55.4 (neutral)
* Industrial (XLI) – 50.5 (neutral)
* Materials (XLB) – 45.3 (neutral)
* Real Estate (IYR) – 51.5 (neutral)
* Retail (RTH) – 62.9 (neutral)
* Utilities (XLU) – 59.1 (neutral)

Ultra Extremes (Insiders Page Only)

* Ultra Long (SSO) – 48.5 (neutral)
* Ultra Short (SDS) – 43.1 (neutral)

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