Morning Update-SPX,XAU,OIH, & BRY

S&P 500 chart (SPX) - 60 minute chart
The 60 minute chart shows that the SPX is in a wave (3) to (4) pullback. I don't know if this pullback is going to turn into an irregular flat or not, but in any case C is or (4) is not in yet. Despite this drop, I am neutral on the SPX. Bulls continue to live above 1246 and Bears live below 1246. Indicators and oscillators are bearish. There are no short recommendations at this time. We continue to go long above 1246. The new sector that I want to focus on is the BBH. I am exiting the Oil and Energy sector and the XAU for the intermediate term.

The Gold and Silver Index- Philadelphia (XAU)-Daily Chart
On the 6 month daily chart, you can see that the XAU is in a bullish trend, and has been parabolic up for the last two months. Parabolic up is not a pattern. Therefore, the only way you can play this sector is by playing the shorter term patterns as they appear within the larger pattern until a proper pullback occurs. The XAU is in a bullish trend reversal on all time frames. There are no recommendations a this time. Again, parabolic up is not a pattern.

Oil Services Holders ETF (OIH)- Daily Chart
The daily chart of the OIH illustrates that it has been range bound and trading sideways for the past month. Last week I recommended that we sell our oil stocks. The only holdings we have now are OXY and NGS. There has been no correction yet in the OIH, everything commodity related has been parabolic. However, the OIH may due for a pullback and we will just have to watch from the sidelines now.

Berry Petroleum Co. (BRY) - Weekly Chart
BRY is one of the energy front runner stocks. The weekly chart shows that BRY has broken out of the ascending triangle. Indicators and oscillators are bullish and the stochastics are flagging and are starting to look bullish. Today, BRY closed up 0.73% at $75.49.