Sunday, March 27, 2011

Chop Chop

Many sectors stalled or reversed at resistance on Friday.  Expect some choppiness ahead as market decides its direction (bull option: digest the move and plow ahead; bear option: bounce over, back down to lows).  Considering recent resilience of the market bias is firmly with the bulls until proven otherwise.

 SPY reversed at trend-line

QQQ reversed at 50SMA and trend-line

We posted this chart a few times last week expecting a move and pause into this area.   Basing under would be healthy in order to set up a new move up.

DBA big move from 100SMA into 50SMA and now pause.

The BEST technical ETF we follow -- GDXJ bounced again perfectly on the 200SMA right into trend-line and now basing on 100SMA.    It could retrace 50% of the move and still be bullish.  Beautiful chart.

SLX we had charted last week as a move from trend-line to 50SMA -- here it is and now pause.  Again, any basing here would be healthy. 

Our favorite sector right now is Oil and Gas -- note how it's basing under trend-line.  We're expecting a breakout soon from this area. 

KOL has also been hot -- we're basing near recent highs.  Any digestion here would be very healthy for the upside.