The January lows have now been taken out convincingly, along with the 200 sma. No surprises there.
But in the process, there is even more reason to anticipate a relief rally, and the market will just need a catalyst---some positive earnings news perhaps? Or the CPI tomorrow morning? If that is in line with expectations, I think the market may rally, especially since oil has started to correct as I thought it would (down to about $56 now I believe).
On the earnings front, today's earnings were quite good, with ORCL beating and guiding upwards after the close. Not much else of note on the earnings agenda for a few weeks, however....
Volume patterns strongly indicate imminent reversal to the upside here. Selling has been overdone, everything is at or near extreme oversold levels, and we are overdue for a relief rally.
Over the weekend, I posted that I thought the end of the week/beginning of next week would see a lot of selling, with a rally in the early part of this week, and the market finishing the week down once again.
Maybe I will end up being right, but in the wrong order---selling first, then rally instead of the other way around.
I still think we are looking at another down week for QQQQ, but some upside is now definitely in order.
T |
