Oversold, But Here’s What The Odds Favor…
I was trying to think of something funny to talk about but if you are
long this market, there is nothing that is funny. The tape is an absolute mess.
Furthermore, the technical condition continues to worsen. For sure, the market
is oversold. PUT/CALLS finally spiked above 1.0 yesterday. But oversold or not,
odds favor — ultimately — lower prices. Yesterday’s action speaks for itself.
The market rallied nicely intraday as Colin Powell was speaking. In fact, the
Dow
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PowerRating) and
S&P 500
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PowerRating) went right to the high
of the base they have been trading in over the past couple of weeks. By the
close, it was all gone and more. THE MARKET IS ONCE AGAIN
ON THE ONE-YARD LINE. Just take a look at the charts to see what I am
talking about.
Simply
put, a break below support of the last two weeks and October lows will be in
sight. Maybe we bounce first off the lows of this recent base…it would be
normal…but then again…maybe not.
I will be on FOX NEWS CHANNEL in the 4:00 PM – 5:00 PM ET hour on Friday Feb. 6
and Saturday at 11:30 AM ET. I am handsome and buffed. Don’t miss it.
Gary