Stocks are in neutral territory heading into trading on Tuesday. While markets like the Russell 2000 – basis the IWM – are in oversold territory below the 200-day – others like the Nasdaq 100 are actually overbought and the S&P 500 and Dow are set to open in neutral.
Technology is the most overbought sector, with buyers also aggressive in retail and consumer discretionary stocks. And while gold stocks in general are in neutral territory, bullion traded sharply lower ahead of Tuesday’s session.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading.
David Penn is Editor in Chief of TradingMarkets.com