Okay, I was thinking I was pretty smart when the market zoomed on Friday. I expected a down day on Friday but not what we saw. When I said that this market could move 200 points either way, I really didn't expect what we saw. So where do we go from here?
Our momentum indicators have been damaged with the long or slow momentum falling into the neutral TradeWinds zone. Our moderate and fast momentum indicators turned down but are also in oversold territory. My thinking is that Friday was clearly an excessive reaction to the idea that Israel would attack Iran and the unemployment report, which logically should have been greeted with favor. But mania has taken over the oil market and so long as that has a grip, then its going to be hard to make much long headway on the market in general.
Sit on the sidelines and make plans to go either short or long depending on how things shake out over the next few days is the best advice I can give at this point.
Check out our Top 25 Lists and TradeWinds Black Box for some trading ideas, if you want.
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