The Nasdaq is currently trading at the top of a rising channel which began in early March. While the daily chart looks bullish here, it has probably gone too far too fast. Some basing action, or even a retest of the breakout area around 2425, would be healthy. I won’t be surprised if trading is choppy the next few weeks.

It should be noted that the double short index ETFs such as TWM, QID, and SDS are winding tighter at the bottom of their wedges. Here’s a chart of TWM. I have also marked the recent pivot trading ranges. Note the equal moves lower.  I’m watching these ETFs on the long side for a break of those trendlines.

Oil stocks moved down again today after gapping lower at the open. OIH doesn’t have any real support until around 188. The 20 day moving average should stall the fall here. It feels like we’re getting rotation out of a sector that’s been leading for three years now. Time will tell.

I’m trading DUG to catch the decline in oil stocks. Volume on the daily chart of DUG has increased on the up days which is bullish. The higher low pivot on the daily and buy signal today had me looking for an entry on a lower time frame.

I tried the buy signal on the 5-minute intraday chart, but was stopped out. I’ll be limiting the amount of charts I’m focusing on in the future, because I failed to buy the 15-minute chart’s buy signal. It worked.

Tomorrow the fed decision should stir up volatility.