Larry Connors, Chairman & Founder, Connors Research

A small pause yesterday and a further pullback today will offer another good short-term buying opportunity as we saw on Monday. Today’s Potential Opportunities on Further Pullbacks: ETFs: IWM

A very normal follow-through day following the rally from oversold conditions and the market is now moderately overbought. We’ll wait for the next pullback.

Yesterday’s rally was very typical of a traditional swing trade in the major indexes. Daily Battle Plan subscribers should have locked in their gains in SPY on the close last night. The market is now back to neutral and we’ll wait for the next pullback. Today’s Potential Opportunities on Further Pullbacks: ETFs: IWM

The market is now oversold with a number of Country Fund ETFs, including SPY showing ConnorsRSI readings under 20. The pullback may continue a few days because of the strong recent rise but it should be viewed as an opportunity to buy. Today’s Potential Opportunities on Further Pullbacks: ETFs: IWM

Finally a spike in the VIX and we now have the first look in a while at a short term pullback. It’s early because QQQ remains overbought but IWM has become short-term oversold. With commodity prices moving as they are, we may see a very interesting December!

The market remains overbought in the US and outside of OPEC acting in an unanticipated manner, the path of least resistance remains quietly higher. It’s going to require an out of the ordinary event to change the course that began in mid-October.

The market remains extremely overbought in the US and the message is exactly the same as yesterday; with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.

Extremely overbought in the US but with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.

In what appears to be a coordinated move, this morning’s news of multi-continent quantitative easing is going to take an overbought market and make it even more overbought. The US is on a short-term one way move and it will likely stay like that until a surprise event occurs. Any pullback in the indexes should…    [Read More] 

The averages masked the internal weakness that occurred yesterday and with the market running up over the past month obviously a short term pullback is long overdue. Any pullback in the indexes should be viewed as short-term buying opportunities. Today’s Potential Opportunities on Further Pullbacks: ETFs: QQQ