Friday we hit overbought conditions on decreasing volume, which led me to believe that we would see some short-term consolidation, however, I did not expect a 679 point loss on the Dow. The theme still seems to be global liquidation and the explosive rally over the last week or so only fueled the fire.
Looking at the daily chart of the SPDR's and it is easy to see the downtrend is still very much intact.
The shorter timeframe does not provide much solace for the bulls either. Looks like we might fill the gap on the chart below. If those levels don't hold I think the markets are in for another leg lower.
Below are a couple of charts of a few stocks I think might be poised for a major move. I will continue to watch these stocks to see which way they break.
The first is Entergy Corp. (ETR). Good looking symetrical triangle on the daily chart.
Exxon Mobil (XOM).
Chevron Corp. (CVX).
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