Waiting for Market to Pullback on Daily Charts
Today the NASDAQ was up a couple points and the DOW was down 23-24 points. The S&P futures closed at the 2063 level, about 54 points above the 10-bar moving average on the daily charts. Anytime the S&P futures are more than 30 points away from the 10-bar moving average on the daily charts it is an extreme condition. I think the market is going to pullback and make a series of higher lows between now and the end of the year. I am waiting for a pullback to work off the overbought condition where I would be looking for a long entry on the daily charts.
Today oil was down around 83 cents, trading at the 43.77 level. I stated that once oil broke the 45.48 level on the daily charts that oil was in trouble. I stated that I was on the sidelines waiting to see what would happen with oil. If oil pushes up into the 48-49.50 range I would be looking to short oil off the daily charts. If oil pulls back into the 40-43 range I would look to buy oil off the weekly charts. If oil pulls into my range I would be looking for oil to push up to the 44.5-45.5 range within the following 1-5 business days.
Gold traded up 4-5 dollars today before the gains were erased. I think gold could test the 1148-1154 range. I would only look to buy gold on an extreme oversold condition. When gold traded up to 1191 I stated that gold was severely overbought and I was looking for a pullback. Gold pulled in from 1191 down to 1158. I am now waiting for gold to get the extreme oversold condition where I would look to buy gold for a trade lasting 3-7 business days.