Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Four Points To Breakout..........

Stock-Markets / Stock Markets 2010 Aug 10, 2010 - 02:14 AM GMT

By: Jack_Steiman

Stock-Markets

And that's all we need to get this market rocking higher. 1150 would be next, where an old gap lives, and then 1173. I know it seems impossible based on the fundamentals, but we have to play what we see. The fact that we printed such nice hollow candles at the 20/50 day exponential moving averages on Friday, and then we followed it up today with nice candles, tells me the bulls are starting to take control short-term, although it's not official until we can waive goodbye to S&P 500 1131.


The financial stocks are starting to look real nice here, although we've seen them set up and not make the move before. I have to say, they couldn't be better set-up short-term to rock higher, carrying the S&P 500 with it above 1131. The market is spending more time now hanging just below the breakout area, and this too, is more bullish action than we've seen before, where we'd get near the top, and then fall very quickly towards the bottom of the base. The bulls aren't allowing for much downside action, and you can almost feel the bears giving up. I'm careful, though, not to get too cute in thinking it's a slam dunk. It's not, and we must be patient to see the move before getting more aggressive. Just when you think it's a done deal, it's not.

Today's action bodes well for the short-term bulls. Friday's candle is probably the catalyst that gets us over S&P 500 1131. One step at a time, but good action if you're a bull.

Back to those financials. I can't tell you how important it is for these stocks to get moving out of their bases in order for the market to make a clean breakout. Without them, I'm afraid it's not going to happen, or even if it does, it won't be sustainable. A false breakout and failure, thus getting these stocks to move, is key. Good news there, I think.

I have watched these stocks fall back through their 20-day exponential moving averages over and over again. The last two times over the past two weeks the 20-day exponential moving average has held perfectly and caused a strong move back higher. It's time everyone. The financials are set to go and we should see the move up sooner than later. I really believe we'll see the move very soon, but again, I won't count on it until it's a done deal.

The foreign countries are showing some fabulous action with the German DAX, and along with the France FTSE and the Paris CAC having some fabulous patterns in place, acting like bull markets. They may just be, and when these countries rock higher, it usually sucks the United States up with them, even if we lag their overall performance. It's hard to find a bad market anywhere else, other than the United States, and yes, it is possible for us to be in a bear market while the rest of the world is in a bull market, but that's not what normally takes place. If the rest of the world is doing well, we usually, at least, move somewhat higher. I really have searched around and simply can't find a bad looking set-up elsewhere. It can change, of course, but these charts aren't showing any signs of anything negative for the short-term, if not medium to longer term.

The fed announces their decision on interest rates tomorrow, and discusses the state of the economy and the risks. He has been doing this for a few weeks now. He's been telling everyone that a full recovery is at least five to six years away, which is why you will not hear anything about interest rates being anywhere except at basically zero. The market will be listening to just how pessimistic he is or is not. It seems like the market wants him to say just one good thing. If he does, it should be the necessary food to get this market over 1131, for a while at least. Sadly, it seems we're controlled by each important economic report that comes out on an almost daily basis. I can't imagine there's much he will say that will shock anyone as he's already put forth the truth more times than most wanted to hear over the past several weeks to months.

It's still all about 1080 to 1131. Anything in between is just noise. Just the way it is for now. The market will make its move out of this range sooner than you think. Doesn't have to, but it's setting up to do so. Once that happens, if that happens, then you simply trade the new range created, which would be 1131 to 1150 short-term. One step at a time, of course.

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.


© 2005-2022 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