MORNING STUDY

Yesterday's markets gave something for everyone as the major indexes were literally all over the map. The SPX had a range of 21+ points which is more than double the typical daily range while the QQQQ had a range of $1.54 which is probably 2 to 3 times the daily range. The DJIA was tame with only a 175 point range, but again something for everyone and losses no doubt for anyone who bought in the morning.

The OIH was crushed on the heels of oil prices breaking down to the $58 level and is now stretched big time from its all its SMA's. One that I track is the 13 and the OIH is now about $10 below its 13 SMA and the last time that happened was mid September at the $125 area which turned out to be a very good time to buy as the OIH ramped to over the $150 level. The 2 day RSI on the OIH is also down to 3 which was the reading back at the mid September lows.

For the DJIA YM futures traders, the Pivot on the YM is at 12,550 with support at 12,450 and resistance at 12,630. So get ready for another fun day as the volatility looks to be ramping.