Hello Everyone,
The major indexes were mixed today with the Dow, SPX, and Russell posting slight gains, while the Nasdaq and QQQ closed down. Some money rotated out of the tech area. IWM outperformed relative to the other major indexes gaining 1.1% as it has a similar pattern to financials and was deeply oversold with RSI positive divergence. The energy sector in particular had a good day with XLE gaining 2.1%, and the OIH adding 4.4%. Banks and Financials also enjoyed mean reversions back to their respective 9 day EMA's today. As I showed in the weekend newsletter, I can count 5 waves down on XLF, thus if we don't see anything blow up, we might continue to see a rally/bonce attempt in these sectors.
This week: Range on ES 3990-4050. Friday is PCE Price Index
have a great night!
Matt
