Today's action finished up the sideways consolidation after a brief early morning retest of yesterday's low. It looks like more selling tomorrow, but a sharp countertrend rally will be coming soon as markets are extremely oversold in the short term.
Adam Hewison of Marketclub shares his thoughts on where the Dow is headed. Check it out: Is The Dow In Trouble?
Even though we could see a couple more days of vicious selling, I am hesitant to add any more on the short side until we get a relief rally. I am short IBD's market correction call using the SDD and will remain short the SDD until IBD calls a confirmed rally. I will wait for the Qs to complete a clear 5 down 3 up sequence on the daily chart to get short. I also think AAPL looks like it will hit its 200dema around 175. GRMN looks like it could roll back over in wave C of a large ABC correction.
Oil could be in trouble tomorrow if the inventory report does not show a drawdown in crude supplies, but I will remain long pending a 3 month sell signal. Gold and silver are knocking on the door of 3 month sell signals. I am trading them on shorter time frames with different methods. Once the correction is over I will detail the trades for you.
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