Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Of Nothing....What Is It Waiting On?.... Sentiment Bullish...

Stock-Markets / Stock Markets 2015 Dec 29, 2015 - 01:05 PM GMT

By: Jack_Steiman

Stock-Markets

We've all seen markets that seem to go nowhere day after day. In fact, month after month, but this market is really tough on the nerves and one's emotions. We have spent a year at the flat line, but it's not just that it's flat, it's how it's going about its business. There are just no moves that sustain themselves. It would be fun if we could ramp up and ramp down, but we do neither for the most part. Some bigger moves for sure along the way, but in reality very few of them thus there's that word we all hate again, but there's no CONVICTION. Neither side is showing the ability to establish itself. No accumulation off bottoms. No distribution off tops. Nothing from nothing.


Look at today's action. A gap down that doesn't fill, but hammers nicely. Gives you some hope, but with the gap open, even just a little bit, it makes life tougher. It's almost as if the market is chasing everyone away. It doesn't want folks involved. So while you do try to participate you want to be sure you don't go overboard. It's hard to fight your emotions because you want to fight them. You want a lot of action, but this market is telling you not to do that. It's like a predator is waiting for you to do something you know you shouldn't do, but it knows in time you will. Try not to be that person. Stay involved, but do so appropriately. A very difficult environment is showing no signs of letting up any time soon. Be smart and adjust to what you're seeing. There will be easier times on your soul.

There is one shining light in all this market to nowhere stuff if you're a bull. It's not very difficult to see, based on volume or the lack thereof, that the bulls are getting very frustrated, so we're seeing very low levels on the bull-bear spread. I don't think this reality should be looked upon without the great interest it deserves. Having the spread at or below 10% is a really good thing to see. It shows little faith in the market overall and tends to keep large bear markets away. It doesn't mean we can't fall decently, because we can, but I think, even in the present moment, it's having an effect on things. The bears are ramping up. The bulls are ramping down. The combination tells us it won't be easy to put the hammer down on the bulls, even if we fall 3-5%. Any move lower will have us below zero on the spread, and to that, I say to the bears, good luck creating a bear market for an extended period with those types of numbers. Correction, for sure, but a longer-term bear won't be easy for now. Just trying to spread a little light on what all of this frustration is doing in a positive way. It's definitely helping underneath the surface.

So, in the end, we watch to make sure those exponential moving averages can hold. 2043 is a very important level for the S&P 500, but there are levels below that matter a lot as well, and ultimately it is about 1993. A close below 1993 with some volume, and the show is over for the bulls for the short- to medium-term. For now, if we can hold above 2043 we have a shot to move higher, and hopefully create our first higher high in some months. That would be very helpful to the bullish, short-term case. A day at a time in a very difficult environment.

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 15-Day Trial to SwingTradeOnline.com!

© 2015 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.


© 2005-2022 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