We are finally getting the long awaited oversold bounce, but the the bigger picture is pretty much unchanged.
Our moderate and fast momentum indicators turned upward today and if we get any kind of follow through tomorrow our slow momentum indicator should do the same. We will still be struggling against some pretty bad negative TradeWinds, so it won't be much to celebrate.
I was real disappointed to see the big sell off in the financials at the end of the day after posting some nice intraday gains. Not sure what that means. Its was either trader action or a bull trap. Tomorrow should give us a better indication. It was also weird to see the Dow collapse at the end of the day, but the techs, small caps and even OEX and SPY held up pretty good. Curious.
Just like we are getting a long side correction, I also think we are starting a correction in oil, which is long overdue. This may give a little bit of legs to the bounce we are seeing.
So that leaves us pretty much still on the sidelines, although I have liked selling some calls and even took a short position in Oil which I won't hold for more than a few days.
Happy Trading.
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