Another big move coming

With the jobs report up tomorrow, all major indices are at a crossroads so as to say. Investors are bracing themselves for some really bad news and anything short of a disaster will be taken as a positive. VWO and FXI are the most bullish patterns, SPY is in neutral territory and XLE is bearish.

Currently i am "hedged" so as to say with positions in VWO and XLE. I plan to take positions based on the jobs report tomorrow.

Divergence revisited

The divergence from a week ago worked beautifully and produced a 20% gain. It hit the longer term trendline in oversold conditions today and there was a nasty sell-off.

I need to follow my own advice more often.

That being said, I really like the volume patterns we have going on. A lot of accumulation going on at these levels and I will put my IRA money back into play when the previous lows are revisited. The upsurge in the dollar has especially made emerging markets very attractive.

Divergence across the board

There are positive divergencies across all indices. In addition the downtrend over the last couple of months could act as support. An entry on oversold conditions either today or tomorrow will be a good entry.

Divergence also seen on the T2108 oversold indicator