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Friday, the last trading day of the week.
Well, honestly the Oil leak that we experienced yesterday was no surprise to most of my readers. I expected that drop and I wanted to point something out from here...
WTIC - This Doji was pointed out yesterday as a topping candle. We had an OPEC meeting that would review possibly continuing with cuts. Could this drop if they agree to continue with the Oil cuts? Yes, it was due and even though OPEC agreed to continue with the Oil cuts, Oil sprung a leak.
WTIC - One thing that I want you to notice is that often when OIL has that one big 3 or 4% slam day ( see red arrow) , it doesn't usually bounce like many other sectors do the following day. It may bounce intra-day, but often that OIL SPILL just continued to sell off day after day in the recent past. Oil is overbought and has plenty of room to run lower. Thursday DWT, DRIP, DUG, and ERY were all great trades from that DOJI top at the trend line.
Read MoreWednesday had the release of the Fed Minutes in the afternoon, and that put a reversal into the Miners sell off. Thursday has the NATGAS inventory report and we also have the OPEC meeting that could Move OIL one way or the other. These things are not unexpected, so let's discuss some observations from the current charts.
SPX - I was expecting this run to roll over after the recent slam, but it will take some time to see how this plays out.
SPX - So far the General Markets continued higher.
This is something that is important to me in the bigger picture...
Read MoreLet's do a little review and discuss a little about a drop that I am expecting.
SPX - There are times when you are expecting a pullback and suddenly you get a large 1 or 2 day slam. That can exhaust the move down, or 'clean the plate' of sellers for a while , so price starts to rise again. I was looking for bounce & an overhead gap fill, but we are also due for a dcl. So will the drop resume or was that it? It could have been a dcl. Let's look at prior moves out of such a slam...
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