SPX/NDX/RUT Are Approaching An Intermediate Term Cycle Low
SPX (S & P 500)/NDX (NASDAQ 100)/RUT (Russell 2000) are approaching an intermediate term cycle low, see SPX's daily candlestick chart at http://stockcharts.com/charts/gallery.html?%24spx, and, see the five day intraday chart at http://finance.yahoo.com/q/ta?s=%5Espx&t=5d&l=off&z=l&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=.
NDX filled it's downside gap at 1846.09 today, so, since that was the last of it's downside gaps, it should soon bottom/might have late today, along with SPX/RUT.
Once I'm convinced that SPX (S & P 500)/NDX (NASDAQ 100)/RUT (Russell 2000) have bottomed, I'll look to trade RUT (Russell 2000) long via the Ultra Long RUT ETF UWM, possibly doing a day trade or two tomorrow. I might also trade SPX long via SSO or NDX long via QLD.
Option expiration this week is a factor behind market volatility/weakness, as of course are well founded concerns about the economy and the credit crisis.
The WMT Lead Indicator has turned very bullish recently, at +2.89% versus SPX (S & P 500) today/on 1-17, at +1.62% on 1-16, +1.06% on 1-15, -1.20% on 1-14, -0.05% on 1-11, +2.40% on 1-10, +0.66% on 1-9, +0.57% on 1-8, +1.21% on 1-7, +1.04% on 1-4.
The technical indicators (RSI, stochastics, Williams %R) for the major averages are extremely oversold, which is another sign that a substantial rally is likely soon.
Keep in mind that SPX probably entered a Cyclical Bear Market on 10-11-07, NDX probably did so in late October 2007, and, RUT probably did so in late July 2007.
Here's what I said earlier about HUI/XAU: http://tradethecycles.blogspot.com/2008/01/vicious-huixau-very-short-term-wave.html.
....... http://www.JoeFRocks.com/ .
HUI NEM XAU
NDX filled it's downside gap at 1846.09 today, so, since that was the last of it's downside gaps, it should soon bottom/might have late today, along with SPX/RUT.
Once I'm convinced that SPX (S & P 500)/NDX (NASDAQ 100)/RUT (Russell 2000) have bottomed, I'll look to trade RUT (Russell 2000) long via the Ultra Long RUT ETF UWM, possibly doing a day trade or two tomorrow. I might also trade SPX long via SSO or NDX long via QLD.
Option expiration this week is a factor behind market volatility/weakness, as of course are well founded concerns about the economy and the credit crisis.
The WMT Lead Indicator has turned very bullish recently, at +2.89% versus SPX (S & P 500) today/on 1-17, at +1.62% on 1-16, +1.06% on 1-15, -1.20% on 1-14, -0.05% on 1-11, +2.40% on 1-10, +0.66% on 1-9, +0.57% on 1-8, +1.21% on 1-7, +1.04% on 1-4.
The technical indicators (RSI, stochastics, Williams %R) for the major averages are extremely oversold, which is another sign that a substantial rally is likely soon.
Keep in mind that SPX probably entered a Cyclical Bear Market on 10-11-07, NDX probably did so in late October 2007, and, RUT probably did so in late July 2007.
Here's what I said earlier about HUI/XAU: http://tradethecycles.blogspot.com/2008/01/vicious-huixau-very-short-term-wave.html.
....... http://www.JoeFRocks.com/ .
HUI NEM XAU
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, SPX, XAU
posted by Joe Ferrazzano at
1:28 PM
0 Comments:
Post a Comment
<< Home