Where to from here?
    If this was the oversold rally, I don’t want to see what the market has next. I do not like what I see out there. Bulls will argue that futures were down sharply and therefore today’s drop was not terrible. To me this line of thinking is weak. This market has been punished for the past three weeks. My timing model is showing the most oversold conditions of the past two years, yet we cannot go higher. Each day I expect a bounce and one never materializes. While it looked why we would attempt to rally in the final hour, the opposite occurred. This type of late day sell-off does not leave me bullish. With options expiration this Friday, I expect an erratic tape to dominate over the next few days.
--
Posted by Sean Hannon on January 16, 2008 at 4:04 pm --
Related Posts:
- No related posts
Subscribe via RSS
Subscribe via Email
Agreed, the selling in the last hour though was overdone, leaving a handful of stocks heavily oversold based on their MACD and RSI indicators.
Though I have no idea which way the market is heading, I think there is a ton of opportunity for easy scalp plays. Other then that sit in cash and wait.
yeah it is a pretty tricky market we are in.