Stocks Begin Day 2 of Oversold Bounce

Futures are up a this morning as the markets go on Day #2 of the oversold bounce. McClellan Oscillator went from (-92ish) to (-50ish).

We are going from extremely oversold to just mildly, so this type of feeble bounce can continue until we test certain broken trend lines as this is a usual scenario. Yesterday’s action was a bit lethargic but strategies both long and short did work in defined areas.

Today we have jobless claims at 8:30, US trade balance and PPI. There will also be several Federal Reserve Presidents making their rounds.

More Importantly we have Google (GOOG) earnings tonight with China GDP#’s and then JP Morgan (JPM) in the morning. So there will be some action. I’ll give some levels with the SPY.

SPY first resistance today will be yesterday’s high combined with the 50day- that stands around $137.54. The next area is $137.84-138.34 (this spot would be an area to sell some longs if you believe this is only an oversold bounce). The $138.78 level starts the Gap from April 9th, and it gets filled up to $139.26 (if the Bears have any control they would protect this area).

SPY support is yesterday’s low of $136.75, then Tuesday’s low 135.76, and Major-Major is at 133.75-134.25.

Some stocks still act very well as we’ve also seen some small changes in character in a few of the leaders. Watch the action close and know your time frame. In my late afternoon note I will talk about a Google option strategy, or on my radio closer to 3:30.

Disclosure: Scott Redler is long SPY, JPM, DNKN, RENN. Short AAPL.

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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