The markets may have capitulated today as a flush came in on the SPDR S&P 500 ETF (NYSE:SPY) to the master $107.95 level.  This was a huge level going back to February and was noted as such in my morning alert sent to premium members.  The volume on this flush was huge as well, signaling a possible bottom in the market in the short term.

Another signal we may be at or near a bottom in this market is the Euro.  Up until the last couple days, the CurrencyShares Euro Trust (NYSE:FXE) kept dropping, killing the markets globally.  Yesterday, the Euro bounced and today, with the markets lower, the Euro has climbed back to the flat line.  Relative strength in the Euro is a positive thing and could spell a bounce coming in the markets globally.

In addition, oil is technically near term extreme oversold.  In the last three weeks, oil has dropped nearly 25%.  The United States Oil Fund LP (NYSE:USO) hit a high of $41.90 on April 30th, 2010.  The low today was $31.88.  That is a 24% drop.  The chart has a bottoming tail on it as well which signals a possible bottom short term.

Solar stocks yesterday also showed an interesting sign.  Bottoming tails formed on daily charts of Trina Solar Limited (NYSE:TSL), Suntech Power Holdings Co., Ltd. (NYSE:STP) and SunPower Corporation (NASDAQ:SPWRA).  Trina Solar is positive flat to positive on the day confirming the bottoming tail, Suntech Power and SunPower Corp. are just slightly lower on the day.

All these signs together tell me there is a solid probability in this market of a short term bottom. It has been a tremendous flush, money has been made on the short side like crazy, let’s make some on the long side now.  Join the Research Center to get the calls, guidance and education.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com