Daily Watch: Oil ETFs rebound from support

After last week's fall, the U.S. stocks rebounded sharply in Monday, allowing it to regain its 200 daily average, but the volume could shrink to a few weeks to the lowest level. Yesterday, the market jump high, then turn the downward, but the major indexes quickly into a stable upward trend and continued the entire trading day. The Nasdaq composite Index rose 3.1%, the S & P 500 index climbed 3%, and the Dow Jones Industrial average rose 2.9%. The Russell 2000 small-stock index rose 4%, and the S & P 400 medium-stock index soared 3.8%.　　All major indices are close to the amplitude highs. A key ingredient missing from yesterday's full rally is the amount of energy that fits. Both the New York Stock Exchange and the Nasdaq have shrunk by 4% in volume compared with the previous session. The Nasdaq has been shrinking for the 4th consecutive day, and the volume is at its lowest level in one months. Given the sharp rise in the prices of major stock indices, we may expect volume to soar, but in fact mutual funds, hedge funds and other institutional investors remain on the sidelines.　　Since the market just entered the callback mode last week, any increase in shrinkage should be viewed with a certain suspicion. Last week we discussed some of the plates and ETFs that showed relative strength and were ready to buy back to key support bits. One of these is Claymore Global Solar Energy (TAN), which we bought on May 13 when it came to the medium-term upward trend line and early breakthrough position support. Also, the oil plate on our watch list provided us with a point of intervention yesterday. Both the Friday Oil Index ($XOI) and the Oil Services Index ($OSX) both came to the 20th line and months to prop up the trend line.　　Yesterday, these support-level trigger plate indices rose by an average of more than 4%. After analyzing various oil-related ETFs, we note that ishares and gas (IEO) have recently shown the greatest relative strength. So we paid the bill yesterday when Ieo broke through the hour downward trend line and confirmed the pullback to support. The following day icon shows the trend of its callback to the support, and the next timeline chart shows us the point of purchase after it breaks the hour-declining trendline: the other ETF on our watch list is Ipath India Index (INP). For the past two weeks, INP has been finishing in a narrow range above the 200-day line, just before the day before the top of the recent range. However, this form of trading has been ineffective, because the news of India's general election made yesterday INP jump more than 25%! Take a look at the daily chart below: After such a huge daily gain, INP is likely to need China or longer to build a support belt and keep going higher.　　But we will continue to pay attention to INP, in case it forms a "cow flag" form, it is possible to continue to spike in the short term. The Market Vectors Agribusiness (MOO), which we mentioned in yesterday's commentary, continued the recent rally,At the same time stood up last week's highs. But since the market may still be in callback mode, we'd rather wait for the callback to buy it. That's why we bought IEO yesterday rather than moo.　　Still, we plan to buy after the Moo callback, preferably in the vicinity of the 20th EMA. We said in yesterday's commentary: "The Nasdaq Composite index is still below the 200 daily average, but it is easy to return to the EMA." The S & P 500 index and the Dow Jones Industrial Average are bracing for the 20th line, which has been glued above the EMA for the past 3 days. "Indeed, the day's rally has allowed NA to return to the 200 daily average, while the S & P 500 and the Dow Jones industrial average rebounded sharply from the 20th line support." However, we were worried about yesterday's lacklustre turnover, and the pullback in the past two weeks has caused a lot of supply.　　On the whole, stay alert and ready to close the wrong position, once the stock market suddenly forcefully confirms the direction of the rise or fall. (Author of this article: Deron Wagner of the Wagner Daily)