Dow & S&P 500 market analysis
Today, everything is pointing to a down day. The monthly pivot resistance on both indexes coinciding with both the S&P 500 and the Dow failing to break above their respective 50 day moving averages+ the high-up-there McClellan Oscillator indicating an overbought market, indicates that it is now inevitable that we will experience a few down days. I believe the S&P should tank to around 750 in the next 2-5 days. Anything beyond that would indicate that the market may tank much more and that the uptrend is over.
Direction for 03/20/2009 Friday: Down
Crude Oil (USO)
Crude is close to its monthly pivot resistance and has hit XOP based on fibonacci. It should not go through a period of weakness before it can continue rallying. I believe crude would be a good long term play based on the hyperinflation that should hit us in the coming months. We can buy the USO ETF as a hedge against inflation.
Direction for 03/20/2009 Friday: Down
Friday, March 20, 2009
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