Another sideways trading day for the market. My bias still remains with the bearish camp over the short-term. Given all of the examples I have cited over the past few days the market still seems like it wants to push lower, but options expiration could be the wild card that is keeping it afloat. The week of options expiration has a tendency to act much like it has so far this week and all of my loyal readers should be aware of the bearish tendencies that follow options expiration as I state how the day following expiration is historically bearish every month. There I go again. Keep a close eye on how the market acts over the next few days. We could get a decent set-up going into next week.
Oversold/Overbought levels for January 17, 2007
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SPY - 68.9 (neutral)
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DIA - 78.8 (overbought)
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IWM - 50.6 (neutral)
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QQQQ - 63.0 (neutral)
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OIH - 47.3 (neutral)
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GLD - 70.6 (overbought)
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Have a great night!
Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.co