Last week's huge drop in U.S. stocks creates a buying opportunity, says BTIG's Katie Stockton.
Oil rattled Wall Street after slumping below 35 dollars a barrel before recovering as the Wall Street. For more we're joined by BP IG's chief technical strategist case to welcome back SP 500 back above. The 2000 level but stocks seeing sort of trading it in tandem with crude what EC will. Well has broken down below what was supporter and forty dollars per barrel that was based on me obviously I believe. And that you know that's that's reflective of the downtrend on long condemned and that is in place momentum has been to the dance and of course shore and really long term. So I think that's that we need to be most mindful of that equity market of course is much different that so volatile that short connect implement the recently. Long commitment and there are some very much positive said that two trends are very different I think we need to respect both of those trends with crude well the next at planetary he had to go back to that 2008. Which is from the generic contract. At that thirty to forty. Thirty to forty people and I am that is for the S&P 500. It's just back above its November low had a horrible week last week I do you mentioned optimism we seem to try to indicate a recovery. So I feel like everyone that they only people who attended optimistic here and that's actually a good thing. And that market internal measures that I attack which are things like brass for market participation. Leadership and sentiment. They off last contrary and buy signals last Friday when we saw the S&P 500 dropped that one point 9%. When you get that kind of emotionally driven selling it it sometimes as climactic meaning that the dam tennis party built into it stock prices. I think that's what's underway here of course they have a potential catalysts are really removal of the catalysts that way with the Fed meeting and speak and at times nicely. For not only these market internals manifest themselves and improve momentum. But also it positions us well for the back half of December what's tends to be pretty seasonally strong possibility. In this could be a make or break we can mention the Fed interest rate decisions once. That's right the reaction to that decision what I careless about him technical standpoint. And of course to proceed down that followed through and short term breakdowns on back at that had been negative be sent back from the market because it's important image there lack of her reaction. Two it has become very widespread short term oversold condition. Going into it today we had about 50% yes and 500 oversold and that has been extremely well. What's Dobson. Should intensity picking up on that it. Sit though this week we have oversold relative readings in areas like health care for which had been beaten that. Earlier this year story earlier this quarter. And of course that utilities actually coming very oversold as well so where amendment is quite negative there thanks for about it just short term phase of that performance. Spokesman in city charities and finally I'd stick with the winners technology Chris has a lot of fans. It what I key support level should investors be lines. For the S&P 500 I'll be watching it back in 1995 and 1965. As the support level I'd like to hold this week passed him back in the Fed's decision that would be important to me and on the apps Adam camp resistance. That begins right around 2100 of course and runs up to final resistance at a high of about twenty and 35 for me. The last thinking can you look at it when he sixteen what the charts telling you. I'm bullish sales I think at right now we have a short term opportunity at hand if we do CBS and 500 another major indices in the world reached new highs. It's a big deal and I say that because a lot of indices will be clearing island short term resistance from this year. But also long term resistance looking back as far as the year 2000. We keep on 2100. That's OK things like it. Our thanks to case documents ET I NG I'm Fred Katayama this is Roy.