TECHNICALS -OIH

OIH in a near perfect set up as it trades back to its uptrending 50 day SMA with a 2 day RSI reading of 6 and overbought stochastics. Of course it can get more oversold but it is probably a nice time to dip a toe in as few expect oil to move higher from here (fade em).

Markets are set to gap higher with the DJIA Futures +42, NAZ+8 and ES +4 on the heels of strong overseas markets. The DJIA Futures are trading between initial resistance at 12,525 and the second level of resistance at 12,555.

My play will probably be to wait for a pullback assuming the internals stay strong and buy the dip as any and all dips have rewarded buyers very well. Witness yesterday morning when the markets were oversold and the volatility indexes were overbought at the 110% of the 10 day SMA levels. Nice gains.