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Major Market Benchmarks Reach Short-Term Oversold Reading

|Includes: PowerShares DB Agriculture ETF (DBA), 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, XLB, XLE, XLF, XLI, XLU, XLV, XLY

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 (NYSEARCA: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.