Here we go again!  

First.....Congratulations for being part of History. We experienced the worst start of the year ever in the S&P.

But it wasn't a big surprise . Last week's Market Radar points to our lower trend line target and understanding that the Daily signal had gotten over bought right up against multiple trend lines. (X markets the Spot)

By today Friday we had rotated all the way back into an oversold level combined with the 60 Min oscillator oversold also. This scenario has been keys going back for 2+ years.

The charts outline both the daily and 60 min stochastics in Yellow and blue.

Here is the 60 Minute chart

Here's the Daily with the 60 Min superimposed over the daily signals

and Looking back at the signals over the last 2 1/2 years

Now this is definitely not a slam dunk, and as usual when we find the markets in a precarious position I am noticing a spike in bearish negative market talk. This is expected but could waver your personal opinion on the markets. Right now as of the close on Friday I find myself both nervous about futures opening on Sunday evening and excited about the setup. If you look back at the charts at most took a 2-3 days before getting the big move expected back up. 

Is there anything different this time around?

Seem's like China has stepped up to take the role of the spoiler. If there's any more significant bad news out over the weekend into Monday morning we could see this set up lead to a very severe breakdown. 

I added to my spy calls today looking for that bounce and started to add to some oil related names $OXY $EOG. 

This Week's HPS Watchlist

The watchlist covers many good names but because we are oversold on most of the quality names its a pick em for what you want to bounce with the markets. If the markets breakdown here well another 100 Points down on the SPX is not out of the question. The Weekly Chart is next

So next week is important and busy  Monday also started the official start of earnings season with AA after the close on Monday

Tune in Sunday night for an early look at the markets Futures open 6:00pm est

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