Wednesday’s massive upside reversal suggested strongly that last week’s pivot low near the 1040 level in the S&P 500 index may have been the bottom. Money Flow measure is also indicating a weak bullish signal. This suggested that over the next couple of days, traders should expect at least a retest of major resistance near the 1100 level.
“ETFs Trading Map” for May 17, 2010: “…As for oil, we’ve noted in the previous update that: “USO sold off sharply early last week. Although it’s now extremely oversold, Money Flow measure had also broke down significantly. So it’s possible that we’ll see a test the bottom of its multi-month trading range of 34.” As anticipated, USO sold off sharply and traded as low as 34.50. It is now extremely oversold. So it’s possible that we could see a…” Subscribers, please login to read more.
“ETFs Trading Map” for April 19, 2010: “…Commodities ETFs: We’ve noted in the previous update that: “USO is currently in a short-term pullback consolidation, which represents the digestion period in the aftermath of the late March massive rally. The overall trend remains bullish so it’s possible that we’ll see a test of the top of its short-term trading.” As anticipated, USO rebounded nicely last week, it traded as high as 41.96 before sellers stepped in and pushed prices lower. The short-term trend has turned bearish followed recent decline so it’s possible that….” Subscribers, please login to read more.
based upon recent trading pattern, risk aversion is now the predominant theme. Usually, stronger U.S. dollar translates into lower prices for commodities and those lower commodity prices filter through to stock prices. Fortunately, recent uptrend in the U.S. dollar may have come to an end. And this is a short-term positive for stocks.
“ETFs Trading Map” for February 1, 2010: “…Commodities ETFs: last week we’ve said that: “USO is now heading for a test of support at 35.48, or the bottom of its short-term trading range…the overall trend remains bearish.” As anticipated, USO rolled over and test support at 35.48 last Friday. Although the overall trend remains bearish, it’s now nearly oversold following recent so…” Subscribers, please login read more.
