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
Silver Market - 22nd Oct 20
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus - 22nd Oct 20
Hacking Wall Street to Close the Wealth Gap - 22nd Oct 20
Natural Gas/UNG Stepping GAP Patterns Suggest Pending Upside Breakout - 22nd Oct 20 -
NVIDIA CANCELS RTX 3070 16b RTX 3080 20gb GPU's Due to GDDR6X Memory Supply Issues - 22nd Oct 20
Zafira B Leaking Water Under Car - 22nd Oct 20
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

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

Stock Market Indices Witness Strong Selling

Stock-Markets / Stock Index Trading Mar 23, 2009 - 12:46 AM GMT

By: Jack_Steiman

Stock-Markets Best Financial Markets Analysis ArticleAnd this is because the Sp and Dow failed at their 50's and the bulls couldn't stop the same old which has been to fall from those 50 day tests. The Nas and Ndx cleared it but now the Nas is slightly below. Nothing terrible but a few points below and it's not great to see similar behavior as we have seen for this entire bear market. Get to the 50's with some indexes clearing the 50's and then things just fall apart. The bulls need to take a stronger stand than this. The rally so far has been on excellent internals and this has kept the rally going but it's time for the bulls to step up here or we're headed right back down.


They need to create a change of character which again, would be to stop the intense selling when we get to those 50 day exponential moving averages. It's very easy to get bearish when these events take place at the 50's and to some degree it's understandable but you have to look no further than the daily and weekly charts to know there is more of a chance things won't fall apart this time as they have every time we've seen this take place since the bear market began in October of 2007. So are we headed back to the old lows all over again Emotionally it feels that way but I am not at all convinced. A very critical time is upon us as we head in to Monday as the bulls need to make their stand right here and right now and not let that 50 day moving average headache get any further away from them as it has due to today's action. Stop the bleeding here and now or watch this all go away.



The market started out to the up side today but that didn't last very long as the selling kicked back in following yesterday's move down. The overbought 60's were certainly in need of deeper selling thus it shouldn't have come as a big surprise but what was disturbing was how the selling accelerated slowly but surely throughout the day. We closed very close to the lows and this too is disturbing as the short term charts, which include the 15, 30 and 60 minute charts, are all deeply oversold now yet they couldn't get the market to bounce but for a few minutes. These deeply oversold short term charts should provide some type of bounce early on next week but that bounce needs to hold. Another strong day of selling will put the entire bottoming scenario in doubt.



The good news is that what needs to lead is still leading. The Nas/Ndx are showing the best relative strength and leaders such as Apple (AAPL), Amazon (AMZN) and Google (GOOG) are holding up extremely well throughout this selling episode. If they start to crack early on next week then the bulls can start bowing their heads in defeat and this rally will just about be officially terminated. Strong patterns exist on all of the leaders, including Goldman Sachs (GS) in the financial sector so it's really now or never for if the market can't bid, these stocks will start to erode and again, it's lights out for the bulls. Let's watch those stocks very closely on Monday and Tuesday for more insight.



1440 is now support on the Nas as is 757 or the 20 day ema then 741 down to that gap at 734/729 on the Sp. The selling needs to really stop before it tests 741 but if got there, that would need to be held or things would be falling apart rapidly. The Sp took out multiple resistance levels with very powerful internals and with some genuine accumulation thus it's hard to imagine things just falling apart here. 800/805 Sp, 7500 Dow and 1495 Nas are the breakouts. If these get taken out the market will rise very quickly. The shorts will know they have to cover and things could get frothy but for now, the concern is more for these major indexes holding their support levels.



The Vix had a head fake breakdown but it occurred when it was extremely oversold the same way the markets were extremely overbought on all the short term time frames. That no longer exists. I'll talk about that in a moment. The Vix has held where it needs to unfortunately for the bulls although it's far from healthy overall. The Macd is lagging some but for now the bulls know that the bears held critical support on the first test down which is normally the case. If additional selling takes place in the market the Vix will rise further making the breakdown less and less likely. Again, the bulls need to get going here. The Sp. Dow and Nas are now oversold although not at extremes on all the short term time frame charts meaning the 15's, 30's and 60's. Here are the numbers. On the 60's, the three major indexes are averaging stochastic's at 7 with Rsi's at 44. The 30's and 15's have slightly higher stochastic's but Rsi's in the 30's. Getting down there and some type of bounce will be needed sooner than later. Watching the nature of that bounce will be critical to understanding where this market is in terms of this particular bear market rally. Over or still more to go. We'll know soon enough.



We've been fortunate these past many weeks and months. Jacobs Enginerring (JEC) got caught up in some very bad news from Fluro (FLR) which lost a $2 billion contract and thus the whole sector got crushed from the typical guilt by association nonsense. No excuses. it is what it is. Can't get them all. It has been a great run overall and we'll be sure to get very defensive if the market flashes a sign that says the current bear market rally has ended. The early part of this week will be very telling for sure. Slow and easy as always.

Peace,

Jack

By Jack Steiman

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 30-Day Trial to SwingTradeOnline.com!

© 2009 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.

Jack Steiman Archive

© 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