Dow -260.51 at 17140.24, Nasdaq -113.54 at 4594.44, S&P-36.87 at 2000.54
- Nasdaq -8.3% YTD
- Russell 2000 -4.0% YTD
- S&P 500 -2.1% YTD
- Dow Jones -1.6% YTD
It was another miserable day on Wall Street today. We could still see some more selling tomorrow, but I am seeing some signs that may show us getting close to a rally for a couple of reasons.
If you watched last night’s video then you know I watch the McClellan Oscillator as well as the (RSI) relative strength and stochastics readings on the four indexes.
I like 30 or lower on RSI and 20 zone on stochastics and we are getting readings that are very close to an oversold reading.
I’d like to see McClellan a little lower, but its getting there. For what its worth, the Nasdaq is the most oversold of the four right now.
The other reason I feel slightly more optimistic is that the European etf’s ( EWG, EWI, EWP, EWQ) all rallied and closed near their highs after selling off hard in the morning. So for now, that can be viewed as a slight positive.
But here is the rub. The Dollar is going ballistic again to the upside as global currencies continue to implode. If the dollar stays firm or goes higher, it will put immense pressure on US companies that do business abroad, and most of our companies.
Our 10 year note continues lower. Yield dropped 7.5% today as it quickly approached all time lows. Amazing.
We continue to live in a world right now that still has a thousand moving parts, so don’t get too comfortable.
We had a great day on the short side, but I took some off.
See you in the morning.