etfmsolutions: Approaching Overhead Resistance....03.09.16

Wednesday, March 9, 2016

Approaching Overhead Resistance....03.09.16

Checking the latest M6 update reveals that XLU is still the risk on choice with SH (SPY inverse) in position #2. We can expect major resistance at SPY 200 and if we break through that then 202 may prove even more difficult to penetrate.
The new talking heads technical spin (today's version) is that equities will likely fall in sync with oil. That being the working premise the jury is still out on whether the current oil rally really has sustainability or whether its based on hope and manipulation.
Based strictly on a supply and demand argument oil is more likely to go down in price than up.
Below is the current Ponzo forecast for XLE (the SPDR diversified oil sector ETF).
Mauldin's extensive study of the Saudi situation supports this bearish position.

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