It has been a couple of weeks since I last provided a technical outlook on the market, and during that time the market has experienced a complete 180. The indices has gone from breaking out to new highs, to the bears leaving us now wondering where the bottom is in this market. There are some indications that the market is finding some support and managing to hold those levels as indicated in the charts below.

Though I think the market has reversed course, and that I will ultimately short this market on any meaningful bounce that we might get, in the short-term (i.e. a few days) I am looking for some quick gains to the long-side. Today I put on a long position in the Nasdaq ETF (QQQQ). Got in at 44.23 sold at intraday resistance at 44.49 for a 0.6% gain. Because this was an intraday trade and I had no intention of holding this position overnight, I put on a hefty size trade equivalent to almost half of my portfolio value. These are the types of plays that I will be looking for in the coming days until we work off these oversold conditions.

Here are the S&P and Nasdaq Charts…

 

 

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