Rollover once again…
Our Wyckoff Technometer is now back to overbought levels on the majority of the indices I monitor. We also have in place the divergence with the OP that Jim O’Brien has been discussing on his updates. So with these tools, we feel the market will have a difficult time moving through resistance at the top of the trading range. We expect a pullback back to the bottom of the range once again….
On the short side we like being short XLE here. The crude oil futures chart “CLV16” is acting much weaker than the oil stocks, and we think will lead the XLE lower by breaking down here.