June 16th Daily Market Comments

Yesterday’s candles in the indexes is a clear indication of why the close is the most important aspect. After the indexes traded bullish all day, they sold off in the final hour. This was somewhat suspected based upon the stochastics had not quite yet reached the oversold condition and the indexes were still trading below the T-line. Today’s trading has experienced a gap down in the oversold area, requiring a little bit more diligence as far as a potential reversal. Remember, if you see a gap down in the oversold conditions, start watching for a reversal. But until then, remain predominantly short. Numerous stocks traded positive yesterday but are trading lower again today. Gold stocks are acting strong with gold prices up strong today.