SIGNAL UPDATE

The market internals have again flipped to green with 650 more winners than losers and the oil stocks are ripping higher. The major indexes are higher but every rally today seems to be sold and every dip bought so I thought it a good time to review some buy and sell signals.

The Volatility VIX/VXO sisters are giving sell signals as they are oversold and trading at about 15% below their 10 day SMA's. A sell signals generally appears when they sink to 10% below, so a strong sell signal there.

The SPX is sitting just above its 50 day SMA and nearing some resistance at the 1275/1280 area. The 2 day RSI sits at 85 and the sell signal is generally a reading of 90, so maybe a bit more to go.

IWM is sitting a bit below the 50 day SMA with a 2 day RSI of 79 and overhead resistance sitting at the 71+ area. Again, a rally higher to resistance would not be surprising.

QQQQ, tech heavy and home to most of the earnings blowups, is the worst performing of the major indexes, and it sits below all resistance and is way below its 50 day SMA at 38. The 2 day RSI reading is 80, so again, maybe some more to go.