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
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
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
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market At trend Line On S&P 500.. Dow Above....

Stock-Markets / Stock Markets 2010 Jul 14, 2010 - 01:30 AM GMT

By: Jack_Steiman


And yes, it is overbought on the short-term charts. A pullback of 15 or so S&P 500 points can occur at any moment in time, or possibly even a bit more. It seems that the positive divergence on the MACD at the lows, along with the 30-RSI readings and 2% bull bear spread, has put the bottom in for this market for the short-term. It doesn't mean we don't get decent pullbacks. We will. However, it does also appear that the market can now chop its way higher back to the 1131 area over time, which will allow for decent gains on long plays.

Don't expect straight up. Nothing is straight up. It will take some special reports on earnings to get this market over the recent highs at 1131, but that's always possible, especially if we get more reports like we did tonight from Intel Corporation (INTC), which blew away their numbers. The market has continued to climb over important resistance levels over the past many days with many indexes clearing trend line resistance, but some still a drop below. Positive action for the bulls here, thus we should continue to climb higher with 1-2% pullbacks along the way.

The market gapped up, yet again today, when good news came in from Greece on a bond auction that really went much better than had been expected. This gave the overseas markets a boost, which was reflected in our futures, and thus, the gap up opening. The key was whether we'd run after the gap up, or print a black candle, which would have meant we'd probably seen a short-term top. It ran all day. No strong pullbacks whatsoever.

The volume was solid, though unspectacular. Not bad, but heavier at the trend lines would have been nicer. Not bad for a mid-July Tuesday, though. The better part of the internals was the action on the advance-decline line which averages better than 5 to 1 positive, which is essential to see when climbing over strong resistance. We closed near the highs and right above the trend line on the S&P 500, but well above the trend lines on the Dow, NYA, and other index charts. Solid overall bullish action.

INTC absolutely blew away the earnings estimates set up for them by analysts. They beat by eight cents, and beat the revenue expectations by roughly 7%. In addition, they raised previous guidance on margin growth from 64% to 67%. Really solid numbers that can't be denied as surprising. No one expected this. Took me by surprise for sure. It is what it is.

Can't imagine they would not be telling the truth with how each company is being watched these days. They're also known for their blunt honesty, as many times they have disappointed the street. They don't play spin doctor, and I have always respected them for that. Like I said, they usually disappoint, so today's report bodes well for them and many others in the semi-conductor space. There are many other earnings reports that will disappoint and cause bad nights for the futures, but this report is a good sign for the bulls for the big picture.

The previous reports on earnings had been bad from a few weeks back. FedEx Corporation (FDX), Nike Inc. (NKE), Best Buy Co. Inc. (BBY), Bed Bath & Beyond, Inc. (BBBY), and others had reported poorly, and had taken the pain for doing so. This tells me that we will have to deal with some losing reports that will hold the market back. So, please don't get overly bullish for no good reason. Things are looking up for sure, but you don't want to get overly involved until the crux of the earnings season is over, and we get the total picture about how the economy is or is not humming along.

We will be able to see where the economy is shining and where it's dull, thus different sectors will do different things in terms of performance. That's key in learning where to put our money. It's not a throw a dart market. You will have to be very careful about where you put your hard earned dollars. I keep score of all the earnings reports to try and get a feel about what's working in this economy and what isn't. You should try to do the same for your own trading ideas.

S&P 500 1093 is key resistance, and we are above by two points, however, that's not enough for me to consider that taken out. We will likely gap up tomorrow, so it'll be interesting to see just how far away from this number we can get. We are also overbought on the short-term 60-minute charts, but not at all on the daily charts. We will need to pull back soon. Just the way it is, although some black candles may be flying tomorrow. At least things are improving technically. Now we get to see how the market handles overbought once again tomorrow on those short-term charts.

Interesting times for sure.



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 21-Day Trial to!

© 2010

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 - 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