There is an area of confluence at 804-800. It is the 20/50 MA(which look to be crossing), it would also be where the trendline from March is. A break of this would be very bearish but could provide a potential bounce area if the market sells off.
MEGA CHART
XLY- This sector looks like a good short, its overbought, RSI is declining, there is resistance overhead.
I am watching USO and EUR/USD for an entry. I was going to go long today, but the EUR/USD pulled back into it's channel. I don't expect "demand" to necessarily drive oil back up, although there should be some increase demand soon. I think it will be the Dollar falling that will drive oil up and longer term inflation will drive it up as well.
Ideal entry would be that blue trendline but the market isn't ideal. So depending on the $USD maybe around the 50EMA.
Look at the USD it's beneath its 20/50 and they have already crossed. A pop back up to those levels is likely but I don't expect it will break above it.
Hope some people enjoys some of the stocks I mentioned in the FADE ME LIST. I went long LAB @ 3.50 today.
