If you’re a fan of thrill rides than this market has been right up your alley. For the first part of the summer oil surged skyward as financials swooshed lower. And now, like every good ride, the market has turned upside down.
For some the action is exhilarating while for others it nauseating. And like the Tower of Terror, you've got to brace yourself for the next big move because right now is the scariest part, we're in the dark.
According to Katie Stockton, chief market technician at MKM Partners, financials probably have more upside than oil has downside.
According to the charts "the Financial Select Sector SPDR has moved above a former support level," which suggests to Stockton there should be further ascent.
And while you're looking at the financial services sector check out Wells Fargo.
“Wells Fargo broke about above its 200-day moving average," Stockton explains, "which suggests the stock will continue higher, into the mid-30’s.”
Meanwhile, gold saw a major pullback on Wednesday and that, too, might present an opportunity.
“The long term uptrend appears to be intact, Stockton says. “I’d look to be a buyer around $945. Or look to buy Royal Gold on the dip."
Of course, as with any thrill ride, make sure you have a strong stomach before hopping on board! We'll just assume you're tall enough!
To see Katie Stockton’s complete technical analysis please watch the video.