Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The Inflation Mega-trend and UK House Prices - Housing Market Analysis Trend Forecast 2022 to 2025 - 5th July 22
Gold Price Summer Seasonal Doldrums - 5th July 22
Tame Budgies Having Fun on a Grape Vine - UK Parakeet Easy Training - 5th July 22
Is the US Yield Curve Inversion Broken? - 3rd July 22
New Signs Economic Turmoil Will Prompt Fed to Lose Its Nerve - 3rd July 22
Stagflation With Powell Could Make Gold Price Happy - 3rd July 22
UK Housing Market Analysis, Trend Forecast 2022 to 2025 - Part 2 - 30th June 22
Stock Market Turning the Screws - 30th June 22
How to Ignore Stocks (and why you should) - 30th June 22
Top Tips For Getting The Correct Insurance Option For Your Needs - 30th June 22
Central Banks Plan To Buy More Gold In 2022 - 30th June 22
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Consolidation Continues...Bullish Overall Action....

Stock-Markets / Stock Index Trading Nov 18, 2009 - 02:00 AM GMT

By: Jack_Steiman


Once again, with the market so close to breaking out, the bears could not take this market down appreciably. Oh, not for lack of effort. That's for sure as the bears tried all day to take things down, but could never gain any steam or momentum. Every bout of selling was met with some type of buying, if not just enough to keep things over 1100 on the S&P 500. Not enough to blast up and out but enough to keep the status quo.

That's all the bulls are really looking for anyway. They don't need to keep running things up, but they do want to keep things close to the area that would allow some further upside if broken through. They accomplished their goal again today as they have for the past many days thus the more bullish consolidation continues.

Even with today starting lower based on futures bought down by overseas selling, thanks mostly to some upside action in the dollar which was bouncing off 75 support, and from being oversold, the bears could not take the gap down and run with it. The market didn't get to any important level of support but simply refused to give way. The Producer Price Index (PPI) report helped some pre-market as there were no signs of inflation in the works, and trust me, when I tell you the market is keeping a close eye on that. The market did seem to find 1100 as support although its, again, not really anything important any more. The bulls seemed to sense that the bears wouldn't make the move appreciably lower than 1100 thus the tendency to nibble all day long.

With very famous "experts", such as Meredith Whitney and Dr. Doom, telling us lately that we'd get killed if we bought stocks, it's impressive that the market held up so well today. It was just yesterday that Ms. Whitney told us this market had no right going higher. She pulls a lot of weight in this game, and for the market to ignore her, says a lot. The bears could not ask for a better representative for their case, yet, it didn't bring about any good results for their side of the story. Good overall action for the day from a bullish perspective. The heavyweight couldn't knock out the lightweight.

The dollar finally got a bounce today off of massive 75 support. The question becomes, is whether it's a bounce in a continuing down trend, or is it a true reversal that says the dollar has reached its ultimate bottom, therefore, the stock market its ultimate top! This can not be answered based on a one-day bounce, but it's one that, of course, needs to be watched. The reversal wasn't rousing and in my opinion doesn't mean a thing. We have to see strong gap ups in the days ahead on strong volume with the UUP (PowerShares DB US Dollar Index Bullish) getting back over 23.00 to tell me there's something different going on now. For now, the trend remains lower for the dollar, and like it or not, that means higher for equities. Doesn't mean blast off. Means overall higher. Lots of ups and downs as we know.

As with any market that is trending mostly lateral, each day brings about a different place within the market where the action is more bullish and where the action is more bearish. The game of par. You need both types of action to keep the market in a consolidation, and today was no different. Commodity stocks overall were lower as were financials, but there were many areas where the action was quite positive. In the areas where there was weakness there was no technical damage done. That's the key. Selling is fine as long as it doesn't cause technical patterns to break. We're not seeing that day-to-day thus wherever the selling occurs, it has been a buying opportunity. If critical sectors start to crack, that'll be a huge red flag we need to pay attention to. For now, all is fine. If it changes, I'll make the necessary adjustments.

Bottom line is, as long as the major sector charts and index charts are holding over their 50-day exponential moving averages, which I mention daily to remind you, there is nothing bearish going on. It's noise within a lateral consolidation that is there to play with your minds. Daily MACD's are still crossed bullish from lower levels thus there seems to be nothing to suggest a crash or massive sell off is out there but you always keep your guard up. This is why no long-term portfolio. There is lots of risk out there we all know about thus day-to-day playing is the safest way to go.



Jack Steiman is author of ( ). Former columnist for, 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!

© 2009

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


18 Nov 09, 17:30
Wall Street NOW FOLOWS China. ZERO Balance.


Post Comment

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