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Major Market Benchmarks Reach Short-Term Oversold Reading

May 23, 2011 10:26 PM ETDBA, DIA, EEM, EFA, EWY, EWZ, FXI, GDX, GLD, IBB, IWM, IYR, OIH, QLD, QQQ, RTH, SDS, SLV, SMH, SPY, SSO, TBT, TNA, TZA, USO, VXX, XL-OLD, XLB, XLE, XLF, XLI, XLU, XLV, XLY
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Andrew Crowder's Blog
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Keeping it short tonight. I am overtired and in need of some sleep.

The S&P gapped lower at the open this morning and proceeded to trade in a sideways fashion for the remainder of the trading day. We are moving ever closer to closing the gap from 4/20. The S&P 500 (SPY) moved to a low of around $131.60 which is roughly $0.25 away from officially closing the gap.

I would not be surprised to see the gap close tomorrow followed by a sharp push higher. However, I do think that the next push higher will eventually fail and push the S&P (SPX) below major support at the 1250 area. Pure speculation of course. Short-term moves are my cup of tea.

If the market happens to move lower tomorrow at the open, I would suspect that a trade will be signaled in one of the major benchmark ETFs (QQQ, DIA, SPY, IWM). Subscribers be on the lookout.

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Kindest,

Andy



Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SPY, QQQ, IWM, DIA over the next 72 hours.

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