Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Top? The Bull & Bear of it!

Stock-Markets / Stock Markets 2010 Oct 03, 2010 - 12:20 PM GMT

By: JD_Rosendahl


Best Financial Markets Analysis ArticleI've been calling for a top into the end of September 2010, and Thursday's gap higher and failure is a classic sign of potentially just that.  That being said, there is still too many conflicting technicals currently.

$SPX 60 Minute:  I've put the bearish label on the 60 minute chart because it looks like a classic ABC pattern up.  The MACD doesn't look terribly bearish sliding lower, so we could get another little push higher.  So far, price has been held in check at the middle pitchfork line, but the RSI has room to support another test of overbought levels.  Price needs to trade below 1,125 to increase the bearish view.  That will also overlap with wave A.

$SPX Daily:  Here again I've labeled the bearish count.  Price is above the neckline or support which is bullish.  MACD is trying to roll, but it could still turn up if price has more upside.  Price needs to roll over below 1,125 with the MACD to gain the bearish view.

$SPX Weekly:  Here's where the market looks more bullish. The weekly MACD has crossed and is heading higher.  I've used the weekly MACD for intermediate signals many times, so we need to respect that the MACD is bullish.  If so, 1,250 and 1,300 are potential targets.

$SPX Monthly:  Ditto the monthly MACD.  It's grinding higher and hasn't even gotten to the zero line.  It too looks bullish.  The upper Bollinger Band is at 1,245, that's the first target is we continue higher.

$SPX Summary:  The market is in No Man's land providing both a potentially short term bearish set up with longer term bullish indicators.  The most persistently bearish Elliott Wave Analysts keep labeling every new high and wiggle up as the end of wave 2 and promoting the death spiral wave 3 to come.  That may happen, but the technical's do not exactly support that currently.  Simply, something needs to give.

IBM:  Big Blue continues to support the stock market.  The MACD reflects a little more room for more upside before a roll over.  Eventually, we should expect a back test of support, which may coincide with a market pull back.  That being said, big blue's breakout is bullish for the market.

JNK:  The junk bond market continues higher as investors stretch for yield.  Higher junk bonds is a vote of confidence in the market, and it's moving higher is a bullish indicator.  It's very overbought and a break below the uptrend line is the first bearish clue.

$VIX:  It rolled over on Friday after testing the downtrend line.  A break out is coming but direction is unknown at this time.

The Risk Chart:  The chart continues to trade inside a wedge type pattern with no clues yet.

$COMPQ:  Stalling so far at resistance.  There's enough room on the MACD to get up to the next price resistance.

XLF:  Still one of the more bearish charts and without the financials I doubt the market is going anywhere in the long run.  We have a little consolidation in between the 50 and 200 day MAs.  Looks like a bearish flag pattern following a 3 black crows move lower.  We should know very soon.

$TRAN:  The transports are failing to clear significant resistance.  If it rolls over, that's bearish for the market.

Big Tech (AAPL, AMZN, BIDU, GOOG, NFLX, PCLN):  Go to:

My Watch List:  For current trading ideas go to:

Hope all is well.

By J.D. Rosendahl

J.D. Rosendahl was a former stock broker/investment consultant (currently not licensed) before becoming a Commercial Banker for the past 14 years. He manages his family's wealth, helping them avoid the high tech bubble and the real estate bubble melt downs and preserving wealth.

© 2010 Copyright J.D. Rosendahl - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in