Oil continued up another 4% on more uncertainty in the Middle East. After a very brief bounce this morning, we had some pretty strong downside once we took out yesterday’s lows. We continued to struggle until the early afternoon and were oversold enough to put together a bit of a bounce. Just as HPQ had hurt technology today, PCLN earning may help NASDAQ tomorrow. It would be interesting to see the quality of the coming bounce to gauge future direction. Here are few thoughts that may favor a bounce on the horizon:
1) Not all but some indicators are beginning to leaning long from ETF Rewind and CSS Analytics
2) Proximity to the 50 ma on SPY about 2%-3% away and we have a gap around the 1284 level
3) 2 big POMO days on Thurs and Fri
4) End of month or beginning of month catalyst
5) First dip off the top
6) VIX extended outside of the Bollinger Band and filled the November gap around 23
7) 100 dollar oil, and what if something goes right in the Middle East?
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