the S&P 500 index is short-term oversold after Thursday’s massive selloff so we should expect at least an attempt to rally over the next couple of days
Capital Essence’s CEM News - Market Outlook (the technical analysis of financial markets) for September 25, 2009: “…Energy stocks may be rolling over. As indicated in the above chart, XLE is pulling back to key support level after a test of the summer early this week was met with an aggressive wave of selling interest. This is a short-term negative. Added to the not so bright picture is the negative Money Flow measure, indicating a possible..” Subscribers, please login to read the rest.
short-term, looks for an attempt to rally around the 880 level on the S&P 500 index. But as our “U.S. Market Trading Map” indicates, the rally, if and when it happens, could be short lived. In a longer term, market is fast approaching key inflection point as we’re heading into second quarter earning season. Right now, all indicators point to a break to the downside, so we should be prepared for more weaknesses over the next couple of weeks.