Bullish Pattern Setting up on Daily Charts
We had a mixed day today, the DOW was up and the NASDAQ was down. I see a beautiful pattern setting up on the daily charts for the exchange traded funds (ETFs) DIA (ETF which mirrors the DOW), SPY (ETF which mirrors the S&P 500) and QQQ (ETF which mirrors the NASDAQ). I am almost getting a very significant oversold reading on the daily charts. I am looking for 1-2 more days of a pullback for the pattern to set up, however this might have been it. After which I think the market could push back up above the 17900 level . As I have stated I believe the market will make a series of higher lows between now and the end of the year.
Oil today was up small. I have a buy signal for oil on the weekly charts and I stated I would look to buy oil in the 42.50-44.50 range. Oil got down to the mid-43 range and then closed above 44. I am waiting to see what happens with oil. If oil on a weekly closing basis takes out the 41.74 level I will have a sell signal on the weekly chart for oil. I would then have a sell signal on both the daily and weekly charts for oil. If you bought oil in the 42.50-44.50 range I would use a 41.74 stop based off the weekly chart.
Gold was completely flat today. Gold tried to push above the 1090 level but pulled right back down. Gold is in a significant bearish trend on both the daily and weekly charts. I am waiting for a bounce in gold to work off the oversold condition.