Working Off Oversold Condition
Today at 8:30 am retail sales came in weaker than expected. With the weaker retail sales number the s&ps started moving higher with the thinking that the federal reserve will not raise interest rates. I have stated that I expected a huge rally due to the extreme oversold condition. The markets are up over 200 and the s&ps are trading at 2060. I am looking for the s&ps to get back to the 2080 area. If we get to the 2080 area I would look for shorts for example SPY, DIA. QQQ, and IWM. Oil is down over 1 and actually traded down to 46.86. If oil closes below 46.93 I would get a sell signal on the daily charts. I could see oil making new lows even maybe trading down to the 35-38 are. I am looking for a nice pop in gold, my target is the 1180 -1190 area where I would look to short gold stocks.