Tuesday, June 13, 2006

200 Days Later.

If you bring up the XLE [energy ETF] or OIH [oil service ETF] on your favorite charting site (BigCharts is one) and draw 100 and 200 day simple moving averages on them, you will see that for the first time in a long time (about 3 years, but who's counting..) the XLE in particular has violated the 200 day moving average, while the OIH is basically right on it.

In addition, both of these ETFs would, given further moves down, violate the 'higher highs, higher lows' precept that is the foundation of most people's definition of an uptrend.

The next couple of days and weeks are therefore crucial in terms of these longer term signals.