Glen
The OSX just became a CLASS 2 BUY with the buy-in day as Monday.
For those who not familiar with my CLASS 1 and CLASS 2 BUYs, a CLASS 1 reverses in 1-3 days(or even same day) with hardly any downside, and a CLASS 2 reverses in 1-6 days with a slightly larger downside than a CLASS 1 and is more influenced by the direction of the market. So on a CLASS 2, if the market moves down, the liklihood is that the OSX should also move down, but not much more.
As for the overall market, it is truly mixed on a technical basis. The BKX, XOI, OSX, XBD, XAL, are in the oversold territory while the majority of the HiTechs are only in the upper-mid range with a few still in the overbought range. The the DOW and SPX are in the lower mid-range. Please understand that per my TA system, althought an index is in the oversold range it can still go down further. The CLASS 1 BUY is actually the bottom the the oversold range. Also if it is in the mid-range, it can go either way, a flip of a coin and highly influenced by news.
So we have a mixed bag, and it is extremely hard to tell the direction for the next 1-3 days. The HiTechs should be coming down and some of the DOW indexes should be going up. The best conclusion I can make at this time is that the Monday could be flat as Friday was (Flat to me is plus or minus 30 DOW points), just no clear direction.
Technically, if the OSX holds near 105 that is a good sign, since it would indicate the first HIGHER LOW on the chart, and could be the first technical clue that the uptrend has started, although it needs further confirmation which would be a HIGHER HIGH at the end of this upcoming short-term up-cycle.
I will probably wait another day or two before getting into the OSX options again.
Seeya |
