Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Keeps Rolling Higher....

Stock-Markets / Stock Markets 2010 Sep 25, 2010 - 04:20 AM GMT

By: Jack_Steiman

Stock-Markets

Taking folks by surprise for sure. Not many thought this was possible, but those oscillators did give hints to the possibilities. Now we see what happens when things align just right. Get those MACD's compressed down low in their cycle. Get stochastic's oversold and those RSI's down near 30. Add in some positive divergences, and best of all, get the bull-bear spread inverted, and you take the masses by surprise.


The market took on 1131 and made it through only to give it up one day later. A nice bear fake lower. Today it shot right back through. No hesitation at all as the futures exploded this morning, ignoring not the very best of action overseas. We gapped up beautifully and never looked back. Not for a moment. A trend up day, all day, with the markets closing on their highs.

The Nasdaq led as it was expected as the appetite for beta was there today. And I just love when that happens, especially when I'm on the long side of the market. When the Nasdaq doesn't lead it's not a good sign, but once beta is the play, I love the bullish side of the equation. An excellent day for the bulls for sure as 1131 was taken right back.

One thing I want to discuss, today, is the nonsense I'm hearing on the business television stations. You hear over and over how the market is being led up by only a very few stocks. That's complete and total nonsense. The advance-decline line since this rally began has been nothing short of spectacular. It's not just Apple Inc. (AAPL) and Amazon.com Inc. (AMZN), folks. It's across the board.

I study hundreds of stocks daily, and I can tell you for sure, this is across the board in all sectors. Look at today -- advancers led decliners by an average of 4.5/1. 87% up volume as well. Tell me how that's not the real deal! It's been this way all along. On down days the advance-decline line is never all that bad save the odd day here and there. On the strong days the advance-decline lines, along with all the other critical internals, remain strong. I can understand if it's just here and there that things match price to internals, but it's been a constant. So please don't believe those voices out there telling you that things are a lot worse than they seem. They're as good as they look folks.

When I look at the charts there are two things that stand out. We all know that the real laggards of this market have been the semiconductors and the financials. The semiconductors, in my opinion, have put in a significant low for the near-term. Strong oscillators abound on the daily SMH/SOX chart. The financials aren't quite as promising, but improving at the least.

The market could never really blast up without both sectors, but can do very well if one of them participates. I think the semiconductors are about to add on to the good action we've been seeing there the past few weeks. The financials need more work for sure, but at least things are a bit more promising there. Bottom line is I believe at least one of the two major headaches is behind this market, and possibly both, with one more week of solid action in the financials.

Now here's the key to a bigger picture bull market. The long-term down-trend line on the weekly S&P 500 chart comes in at 1160. I believe an index, or stock, must clear critical support, or resistance, by 1% to verify a breakout, or breakdown. Any move above 1160 S&P 500 will have the bears feeling heavy pressure to cover their shorts. Any move above 1171 will have the bears running to their machines to get them out at any cost.

Bottom line here is if the S&P 500 can start to clear 1160 with force, we may just be in a new bull market confirmed. Strong support remains at 1131 down to 1110. Nasdaq support comes in at 2350 and then 2300. Let's keep a keen eye on S&P 500 1160 if and when it gets tested next week. The bears will be desperate once again at this level. We'll also be near, or at overbought, at 1160 S&P 500, so that'll make the job of clearing 1160 on the first try a bit difficult, but let's watch how things work out next week.

One of the major factors to this week's rise were the words out of the mouth of Fed Bernanke, who promised the world that he will do whatever it takes in terms of printing dollars to keep this economy afloat. Many will argue with this thesis, as will I, but it's not my job to let my emotions on this subject interfere with the market action taking place. I think it's wrong to leave the printing presses open to prop up an economy. If that's what's needed it's best to let things work out as they need to.

However, the market seems to like what it's hearing from our Fed. Promises to keep things from becoming of the double dip variety is what this market seems to want, and it feels, for now, that he is delivering on keeping this from happening. If the market likes it then I like it, regardless of whether it's morally the right thing to do or not. For now things are looking more positive. We will watch 1160 S&P 500 closely for more clues about much further upside potential.
Staying only long for now.

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 constitutinginvestment 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