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Working Off Oversold Levels

Published 09/30/2015, 01:49 AM
Updated 07/09/2023, 06:31 AM
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“The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.” Jesse Livermore

A nice quiet day this Tuesday after a major drop on Monday which took us to oversold levels.

A few more days and we should resume the moves lower as we near the strong time of year.

SPY Daily Chart

SPDR S&P 500 (NYSE:SPY) printed a Doji today which can signify a change in direction if it is confirmed with a higher close tomorrow.

That said, neither iShares Russell 2000 (NYSE:IWM) nor PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) printed a Doji bar so the Doji in SPY is likely not going to work.

The 86.50 area is holding for now and we are working off oversold levels well as I talked about here Monday evening.

Resistance overhead is 190 and 192.50 and a couple more days of consolidation would be best before we move lower again to give us a double bottom if all goes well.

So far, so good though and we remain on track for a nice end of year rally.

I’ve said since the spring that summer would likely be slow before we ramp up into the seasonally strong time of year which is almost here.

Enjoy the next week or two of quiet because it may get very busy for us after that.

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