With the S&P having reached his downside targets, technician Richard Rhodes is now taking some long positions. In The Rhodes Report, he  looks to steel and transportation.

Track Richard’s picks at:

http://trackthepros.com/stocks/category/1503

“The S&P 500 longer-term technicals remain bearish, although they have reached and exceeded our downside target.

“Now, the S&P is becoming rather oversold on a number of measures that have in the past been consistent with a sharp snap back rally of either the long-term or transient kind.

“At this point, we vote with the latter transient kind, but clearly the risk-reward of selling short at current levels is not very good —hence we’ll only consider doing so on rallies into resistance.

“We do believe there is a another shoe to fall, but not at this very moment, for the markets seem to have prepared for another jog higher towards resistance levels

“Our trading strategy is rather clear – we are buyers of