Finally, we've got a day of good trending - to the upside. The market opened lower on poor durable orders data, but quickly regained its footing once it hit the lower bottom of the channel on 15 min chart (see below). It's the FOMC policy statement day on Thurs. I don't usually like to predict the direction of the market, but I'm slightly leaning to the bullish side. The market has corrected a fair bit so far and my guess is the big guys out there will take this chance to interpret the FOMC statement positively and push the market up for Q2 window dressing. But then, I could be very wrong, so please do your own due diligence and let the market lead you!
It is amazing how the E.I.A. Statistics provided the market a lift up when usually the low inventory is bearish on the market, although the rally on energy stocks is understandable. I guess when the market wants to bounce, it will find any reason to do so. Here's a daily chart of OIH, with clear support from 20MA
And here's a 5 min chart on OIH if you wanted a low risk entry trade. Typically on such very bullish inventory numbers, expect another leg up after the initial spike at 10.30am (when the EIA statistics is released). The trick is to wait for pullback, then look for low risk entry because the OIH can be very volatile.