Waiting for Long Pattern on Daily Charts to Complete for DIA IWM SPY and QQQ
On Friday I stated that I was looking for the market to pull in and set up on the daily charts sometime this week between Monday and Thursday. I would then be looking for another pushup in the market before making a series of higher lows into the end of the year. Today the DOW was down about 78. This pattern should be complete no later than Thursday afternoon/Friday morning if the market continues to drift lower over the next couple days. The Russell 2000 is trying to play catch-up here and is starting to outperform the market. I would look to buy the exchange traded funds DIA, IWM, SPY, and QQQ once I get the oversold condition on the daily charts.
Gold traded down to the 1052 level before trading up 10-11 and settling up about 7. Gold is extremely oversold here. The 1040 number is a big number for gold. If anyone wants to take a stab at gold I would look to buy gold in the 1040-1055 range with a 1038 stop. I was looking for gold to push above the 1090 level. Gold got up to the 1075-1081 level and has drifted lower since.
On Friday oil traded above the 43 dollar a barrel level before drifting lower. At one point today oil was up 60-70 cents before settling up 5 cents. There is a ton of overhead resistance in oil. I would look to short oil in the 44.50-46.50 range off of the daily and weekly charts. I now have a buy signal for oil on the eight hour chart. I would look to buy oil in the 40.40-41.40 range with a 39.90 stop off of the eight hour chart. I think that oil is starting to build a base here and I think this buy signal will help push oil up over the next couple weeks.