Markets rallied from pivotal supports in noted Megaphone RST formations for SPX 1240 and DOW 11120. Nasdaq 2210 and Qs 4424 are pull back targets and pivotal supports at which markets reversed. $BKX 59.38 reversed from 54 noted LT RST support. Oil 136.70 retrieved from 146 which is near LT projected target 150 shown on the VLT chart, conversely, $TRAN rallied to 4921 from 4650 support. As more solar car becomes popular, oil price will substantially fall which will also stimulate next economic growth. Trading volume was higher during the last few days with higher VIX with consolidating formations which can be seen on DOW round bottom with positive divergences on weekly and oversold daily price actions. We will likely see a bottom at this level even though earning reports are uncertain. Prior to the recent pull back, on weekly price actions, the rally from Jan-Mar 2008, were showing positive divergences while daily price actions were showing negative divergences. Now, we have positive divergences on daily and weekly. With weekly +D ZLR and megaphone formations, it is likely that we have seen the bottoms.
~~~ $BKX ~~~ 59.38 rallied 7.63% from very oversold condition. BAC/C rallied 9.3%/6%, respectively. The LT $BKX formation from megaphone RST support with hammer formation is suggesting a LT bottom as noted in previous comments.
~~ DOW 30 Components ~~ as noted on previous post, financials rallied, within DOW 30, and CVX and XOM were underperformed with only about -1%. AA sold off 3.07% however, it regained the loss after earning report in AH.
~~ Qs, SPY, DIA OEPM charts ~~ show positive signs closing above yesterday HOD, but not SPY & DIA. DIA/DOW shows bottoming formation even though we had violent intraday swings for several days.
~~~Nice rally from oversold market condition with some comments from various fed and bank officials. Oil price certainly helped markets and B.P. comments are helpful, but I think that developing solar energy is better than wind energy as solar energy is a new technology while wind energy is still using evolved old technology, i.e. electricity.
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