In our mid-week newsletter to our subscribers Wednesday night, we outlined 5 reasons the market is poised to move higher.
When viewing the daily index charts, the market pulled back to close to the 50 day average:
And for your viewing pleasure here is the US Dollar chart from the weekend and sure enough here we are testing trend channel resistance. Just another potential correlation that shows stocks could be ready to make a move again.
So in addition to the USD correlation we’ve got:
1. The indexes pulling back to the 50 day average.
2. The Full Stoh’s finally in the oversold zone.
3. A fair amount of market leaders showing oversold indicators and support levels being tagged
4. A Lot of “Follow The Leaders” Pulling back Of Highs (POH)
5. The RSI in neutral.
The interesting thing about the RSI in the SPX and OTC Comp chart is that all the while the those indexes were in the April through August correction the RSI could not peak above the neutral from underneath (blue boxes in daily index charts at top of newsletter). Meaning they went between 30 (oversold) and 50 ish (neutral) this time because the markets are in an uptrend and pulling back off highs we may end up doing the same thing only difference is that we’ll end up bouncing when all said and done between 70 (overbought) and 50 (neutral) we’ll find out as soon as we get a lift.
So all in all call us in the “Zone” for a turn higher. When that occurs with vigor care to guess who they are going to move higher first? The same kingpins they always do and that is:
AAPL, NFLX, BIDU, AMZN and probably the metal stocks too.
As of this posting:
AAPL — up 8.83
NFLX — up 3.64
BIDU — up 1.98
AMZN — up 6.42
SLW — up 5%
SLV — up 5%
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