OEX is where it's at.
OEX (S&P 100) is probably the most important chart out there at this point. Like NDX, it is loaded with the biggest cap stocks, but unlike NDX, it includes financials and thus gives us a better idea as to where we stand.
After losing 50% 2000/2002 (615.68) last week, it headed straight down to test the January lows (594). If that holds, there is a possibility that we could be forming an inverted head and shoulder on the monthly chart, which would be very bullish medium term. Of course, 595 needs to hold on a monthly closing basis. If bulls can't defend that level, we will most likely test and lose the March lows (583.64) and head straight down to 561.23, 38.2% 2000/2002. Resistance above 600 is 615 and 621. Bulls take over above 639.
Set your alarms accordingly and once the trend is set, don't fight it.
This entry was posted
on Sunday, June 22, 2008 at 6/22/2008 01:38:00 PM.
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