Pullback Starting

After a few frustrating days of the markets going nowhere, today the markets headed downward closing down 81 points. I have been calling for a pullback on the daily charts, I think this might be the start. I am looking for the s&ps to pull back between 2075-2085 area. I need to see my stochastic work, off the overbought condition and get oversold. If that happens names like QQQ, SPY, DIA, HD, SBUX, MMM, DIS should have great long patterns on the  daily charts looking at my software. The next move up should put the Nasdaq over 5000 and the markets to new highs again, however, I think the markets are on borrowed time and if I was a long term investor I would look to sell into this rally. I see trouble ahead especially the 4 gaps below on the market that I think will get filled, so don’t be a deer in the head lights! Oil traded below 49 as I thought and I said I would buy oil below 49 with a stop at 46.70. Oil traded down to 47.80 and closed today at 49.45 but reached a high of 49.94 today. I would look to sell oil above the 49.30. Gold has rallied about 17 dollars off the low and now the daily charts are starting to set up. I think gold can get to the 1230 area I have to wait to and see.

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