Glen,
The OSX has probably the most promise of most of the sectors. Sure the drugs banks, but they are oversold. The hitech sector is starting to come back, but their profits can go up and down like a Yo-YO.
For the immediate short-term the overmarket may pull-back, but it will not last long at all due to strength of the NAZ. This pullback may just last 1-2 more days, and could reverse back up as soon as Monday.
I am trying to find a commodity chart of CRUDE OIL which I can overlay it with the OSX, since my suspicion is that the OSX will move with CRUDE, but that will be coming to an end soon.
It appears that technically, Crude has found its bottom and may be testing it one more time before a smoother and longer climb up. I'm no expert in Crude, just a technician. Once the market sees that Crude is climbing in a more sustained and less volitile manner, then the OSX will trade ahead of it and start to move up strongly.
Technically the OSX found its bottom, and the last dip was crucial in the sense that it was the first time since OCT that the the low was higher than the previous low. Unfortunately, in this current dip, the immediate peak was lower than the previous peak, so it is not yet conclusive. If the OSX does continue down, the 92-93 support area needs to hold. Thus forming a double bottom strengthening that support line and adds to the confirmation of bottoming.
The short-term technicals are now in the Mid-range, meaning that it can go either way and will probably follow the overall market.
I will start to accumulate when the OSX is around 95, if it gets there, and add on if it goes lower.
Be careful not of the OSX but of the overall market. At this time I am getting technical hints that we may have another major pullback at the end of FEB/MAR. A pullback that could take us back to the 7000-7400 range in the DOw. Such is far from conclusive and needs a huge amount of confirmations, so its not yet time to get worried.
Seeya |
