Market Selloff Working Off Overbought Condition

Over the last couple days I have been saying that the market is extremely overbought. We had seven consecutive up days with gains of over 1100 points on the DOW. Whenever the S&P futures are more than 30 points away from the 10 bar moving average it is an extreme condition. The S&P futures were over 50 points away from the 10 bar moving average on the daily chart. This was a sign of trouble. The S&P futures traded as high 2014.75 yesterday and today they traded as low as 1982.50. The S&P futures are now 18-19 points from the 10 bar moving average. There is a beautiful pattern setting up on the daily charts. I am looking for the market to make a higher low. I am 100% certain that the low of 15379 is in for the year. We had weaker than expected retail sales this morning coming in at 0.1%. In a robust economy retail sales should be in the 0.4-0.6% range. Sometime mid-morning Wal-Mart reported that its full-year sales would be flat and that they expect earnings per share to decline by 6-12% next fiscal year. Wal-Mart, a DOW stock, is down over 9% and is leading most of the decline today. I am waiting for an oversold condition in the next 1-3 days before we move back up. Yesterday I stated I was looking for a pullback in oil in the 44.50-46.50 range. Oil pulled back to 45.94. I would be looking to get out of any oil positions that were bought on the pullback above 46.50. Tomorrow the oil inventory number is being released and I would look to be flat oil going into that news. Gold traded as high as 1185-1188 today. Gold is significantly overbought. I am waiting for a pullback in gold to go long for a short term trade. I would also look at the gold stocks such as ABX (Barrick Gold), AUY (Yamana Gold), KGC (Kinross Gold), NEM(Newmont Mining), and NUGT for a short term trade.
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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.