Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21
S&P 500 Rallies To New All-Time Highs – Are The Markets About To Break Higher? - 5th Sep 21
Bond Conundrum - Boom or Bust for Gold? - 5th Sep 21
How the sale of a Sting CD sparked an Entire Online Industry - 5th Sep 21
Three Years of Fresh Thinking With Scott Dylan and Dave Antrobus - 5th Sep 21
Bitcoin Bear Market Trend Forecast 2021 and Model Crypto Portfolio Buying Levels - 4th Sep 21
The Most Actively Traded Companies on the Toronto Stock Exchange - 4th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Hanging Tough.....

Stock-Markets / Stock Markets 2010 Mar 04, 2010 - 01:26 AM GMT

By: Jack_Steiman

Stock-Markets

This market is really trying to hang tough and hold S&P 500 1115. It's not bad if it falls below by a few points as the oscillators unwind from overbought, but that level held on today's lows as things finally started to pull back off their highs. As soon as it hit at 1115 buyers came in showing you what the bulls think of staying above this level just captured yesterday for the first time off the recent lows.


Good solid action for sure by the bulls, but if you study the 60-minute charts you will see that they could still use some work to get things set up perfectly for another run higher towards the S&P 500 1130's to 1150 area. If you're bullish on this market you have to be excited about the prospects of higher prices to come based on today's performance when the market had every right to sell harder from overbought.

Strong up trending markets don't give up their gains easily and they especially don't give up resistance levels just taken (1115). Weaker market tends to sell very easily once you get anywhere near overbought on any time frame chart. This market is not at all showing this type of behavior. This tells you things are definitely on the positive side of the coin and that the bears will have trouble sustaining any type of continuous downside action. The markets finished basically flat for the day which isn't bad when you look at those 60-minute charts and see how mush unwinding took place. Not near complete but a definite nice start without any price erosion.

When markets are trying to trend higher I always want to make sure that sentiment isn't getting too bullish. When the numbers came out today I saw something I liked due to the fact that I have a bullish bias in the market here. The bull bear spread is only at +19.4% more bulls. You need levels over 30% and usually over 35% to get the market to switch gears and head south. Last time it took 37.5% if you remember. This caused the top and gave us our 8% market pullback across the board. 19.4% is neutral and thus remains favorable for the bullish case.

The PowerShares DB US Dollar Index Bullish (UUP) or the ETF for the dollar has finally started to fall after trying the top four different times. Each equal or slightly higher high was greeted with negative divergences on all the oscillators on the daily chart. Add in a negative divergence on the 60-minute chart a few days back and it finally started to fall. It lost the 20-day exponential moving average today but has the critical level of support that must hold at 23.30. It's now trading between the 20's and 50's and it'll be interesting to see which way it breaks, but for now the chart isn't very favorable looking. As long as the UUP struggles it's likely to be decent news for the bulls in equities although equities have been holding up well lately even as the UUP rallied.

Many stocks are simply hitting the top of their wedges as are many index charts. It's now time for some type of handle. that would be best. If the handle gets put in with little price erosion, you will want to get your buy list handy as the market should make another leg higher. We need to watch and make sure this is what takes place. I think it will and I see many stocks starting to set up already. A little patience here is warranted. Things still look very good for higher prices fairly soon.

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!

© 2010 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