Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Down Month....Bulls Holding Key Support....Bears Holding Key Resistance....

Stock-Markets / Stock Markets 2011 May 28, 2011 - 02:42 PM GMT

By: Jack_Steiman

Stock-Markets

Boring times such as we are experiencing now can also be construed as interesting if you dig underneath the "nowhere" movement of the market. It's really interesting how both sides are holding massive support and resistance when the charts approach them. So many times this past week the bears banged hard on 1315, even hitting 1311 intraday. They simply could not get the job done.


Once they failed to get through enough times the bulls tried to get more aggressive and played the game of let's try to take the bears to their knees with a move over trend line resistance at 1335. No can do. Close but no ringing of the bell. You'd think both sides feel a bit frustrated with their lack of getting the job done, but that's the market we're in right now. The range has gotten tighter and tighter for sure. A simple 1.5% range on the S&P 500 between 1315 and 1335. The only two numbers that matter at all. Anything else is a waste of time worrying about it. So today we close much closer to the top of the range finishing at S&P 500 1331.

Oh so close, but we all know that close means nothing and has meant nothing for too long now to get excited about it. It makes you wonder how much fun it would if we could only get a few more points out of things and get another quick move up in the market. But you shouldn't even think about it. See it and then get excited if you're a bull, but unless you see it don't waste a moment playing off it.

Don't anticipate it. A lot of anticipating on the down side buried a lot of bearish plays for folks. If you get too excited on the long side here, one little gap down will have you feeling like a failure for running the move before it took place. Bottom line is the market is whipsawing around haphazardly right now with no clear cut winner for the short-term. The lines in the sand are set about as clearly as they could ever be. 1315 and 1335. A fun week coming up next week as one would hope we'll finally see one of those levels get taken out with some force. See it before you act.

Two headaches, well one and a half headaches remain for the bulls to have to overcome. The weekly charts still look poor and could do far more unwinding over time in order to work off those large negative divergences. They don't run down very quickly because of the time frame involved. Weekly's take time, although the past five weeks of overall down side action have worked off some of those divergences. Still could use quite a bit more. MACD's are down some, but still quite high and near the top. Want them down near the zero line or at least close. Right now they're quite a bit higher than that across the board on the major index charts.

On top of that weekly headache we still have a minor problem in terms of sentiment. Yes, the bull-bear spread has gone down from 41.6% to 23.6%. 23.6% is not a problem normally based on historical data. However, in this case, the bears are still only at 19.4%. Not very good at all. You want closer to 30%. It seems the market somehow needs more fear in time to bring things down and get more bulls to go bearish and more neutral folks to go bearish as well. Again, it's hard to say sentiment is a big problem at 23.6%, but I would be much happier with bears near 30%.

One thing can't be argued and that's the fact that many index charts on the daily time frame have unwound quite a bit off the top. Most got oversold on their stochastics. When you're in a bull market and things get oversold on the daily charts on even one of the key oscillators, you usually spend some time moving higher to unwind things back up at least a little bit. That process is under way. The stochastics have crossed back up bullish, but in this environment, you have to wonder just how high they can run.

It's unlikely that we'll see them blast up to the overbought zone, meaning 80, or above, but that's always a possibility. The weekly problems we have probably mean we won't get overbought, but not impossible by any means. The MACD's have gone from well above the zero line at, or below, the zero line and RSI's have gone from 70+ to the upper 30's or low 40's when we had bottomed out a few days ago.
Now they're only back to neutral around 50. Nothing is even close to overbought as we speak, thus, we can try to break through this 1335 trend line headache for the bulls and try for one more high. Any new high would create terrible negative divergences once again on the daily and weekly charts so don't expect the market to explode out. It's not going to happen. The daily charts are still a bit more favorable for the moment, but don't forget how poor the weekly charts are.

Just continue to be extremely patient folks. Take your time and don't put on too many plays. Be appropriate here. Recognize the risks on both sides and wait to see which number gets removed first, 1315 or 1335 S&P 500. Aggressive playing means you're playing from greed, and that won't work most of the time so again. More than 15% exposure makes no sense to me, but of course, always do what feels right to you.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Sign up for a Free 21-Day Trial to SwingTradeOnline.com!

© 2011 SwingTradeOnline.com

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.


© 2005-2019 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules