The ES exploded higher, opening above the upper gap fill threshold, then adding on more and closing at the HOD. This is a price flip on the chart and relieves a good deal of the oversold energy. If the move continues higher the next level is the 1250 area.

The NQ futures were higher by 54 on the day. This blast was fueled by 1300+ stocks that after Monday were 8 days down. This price flip caused many of the stocks to also flip so there are only 229 of the 1300 stocks 9 days down. A near-term DTL has been added to the chart.

Multi sector daily chart:

The 10-day Trin recorded a very low close today at 0.17 but the average is still in oversold territory.

The beaten down XBD was the top gun on the day up 6%. Price is still below the primary DTL (red) but a close and follow through would be a trend changer.

The OSX also greatly outperformed the broad market. 220 is the next overhead challenge.

The SOX outperformed the NDX but is still within the sloppy range. This bounce will turn much more important if the 4/8 375 level is taken out.

The BKX is likely the key piece of the puzzle. The banks regaining some kind of positive footing would be a game changer for the broad market. Note the pattern within the pattern. A break out of the triangle should lead to a retest of the lateral boundary 33-42.

The XAU will be interesting long over 187.50.

Gold bounced back into a key area where the 200dma converges with the 0/8 level.

Oil doesn’t want to stay down. It outperformed the SPX, NDX and Compq. This is likely an asset class to watch in 2012.

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