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
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 Tired?......Nothing Bearish.....

Stock-Markets / Stock Markets 2012 Aug 28, 2012 - 02:25 AM GMT

By: Jack_Steiman


The market was playing off the news that came in just after the close of action on Friday. It was, as usual, good news about Apple Inc. (AAPL) and their lawsuit against Samsung. The jury voted in their favor for a huge cash reward and licensing issues. The stock soared $20 after hours, and thus, the futures shot up as well. Google Inc. (GOOG) was adversely affected, but isn't as heavily weighted. The futures held up overall over the weekend, with Apple gapping up nearly all of those $20 it received after hours on Friday. The S&P 500 and Dow gapped up, but those gap ups were very tiny in nature. Again, Apple being the stock market.

There should be separate stock markets, Apple, and then everything else separate. No amount of froth can kill this stock, but it did close with a black candle today, meaning on-balance sellers after the gap up, which almost always means a top for a stock short-term. You never know with Apple, however, as it always defies logic and technical analysis, especially when the technical work gets a bit more on the sell side. We saw the market pull back as Apple pulled back with some black candles printed across the board, especially on the Nasdaq.

It should, again I say should, produce at least a little selling in the days ahead. But keep in mind, we're more in bull mode, thus, it shouldn't be more than 2% worth of selling down to S&P 500 1380. It doesn't have to get that low, but that would be normal based on today's sticks. Bottom line today wasn't terrible, but the market did act as if it's a bit tired, and thus, some caution short-term is warranted. We shall see. Some small unwinding would be healthy and not bearish.

The market has its attention turned to Mr. Bernanke, who will make a big speech about the economies of the world, and what the best minds in the world are planning at this time to deal with the huge problems hanging over the heads of the entire Eurozone. He has hinted recently that QE3 was on the way, but he loves to threaten in order to get the market higher. Once the market rises, he gets relief and puts QE3 on hold. He may disappoint some by saying just that on Friday. That QE3 is still out there and will be used if necessary, but for now he doesn't see the need to push it through.

It's the belief of many that this will cause a strong push lower in the market. I don't necessarily agree with that thinking. I think he'll be sending out a message that things are more under control, and after a quick move lower it's my guess things would be bought up again. It's always possible he will institute QE3 on Friday, but I don't think that'll be the case. Again, any stronger selling from traders will likely be bought up shortly thereafter. Use weakness to buy if it occurs.

The market saw most of its indexes, except for the Nasdaq, hit the top of their wedges and start to struggle. We showed how 1425/1430 was the top of the wedge on the S&P 500, and since we hit that level, we have paused, but not really sold all that much. Only 1% off the top for now, although it could become 3% before the selling stops near 1380. It's not a guarantee we go that low, but certainly a possibility. The fact that the daily charts are unwinding their oscillators without too much down side price pressure usually is bullish bigger picture, although the short-term can get choppy causing some fear. Many of the daily stochastics have pulled back more than half way down their scales. Good to see.

RSI's are also unwinding back down with the MACD's lagging a bit as they always come down last. All in all, it's good action for the bulls as they're keeping the S&P 500 not too far from the big breakout level of 1425/1430. The next week or so should be telling, especially once we hear from Mr. Bernanke on Friday.



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 15-Day Trial to!

© 2012

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 - 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