Todd Market Forecast for 3pm Pacific Wednesday November 16 , 2016
DOW - 55 on 100 net advances
NASDAQ COMP + 19 on 150 net advances
SHORT TERM TREND Bullish
INTERMEDIATE TERM Bullish
STOCKS: Today was profit taking after 7 up days in a row for the Dow. We like the fact that it was down on positive breadth.
Crude oil may have influenced trading. It was down on a high inventory number.
It's tempting to take a long trading position, but it's a bit too risky right now.
GOLD: Gold was flat. Not much happening even though it is very oversold.
CHART The NASDAQ Composite, like the S&P 500 is overbought and in a congestion zone. Note that when 5 Day RSI becomes overbought (over 70) the index usually drops or goes sideways. That is unless it is in a sustained uptrend like last July. We should soon know if that's the case. We still have in mind the high put call ratios.
BOTTOM LINE: (Trading)