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
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
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 Staying Lateral Off The Big Move Up....

Stock-Markets / Stock Markets 2013 Jan 08, 2013 - 05:43 AM GMT

By: Jack_Steiman

Stock-Markets

The market had a huge move a few days back when the fiscal cliff news was settled positively, the Republicans giving in to the news due to the fear of market conditions. They took a right cross as they swallowed the tax headaches in which they wanted no part. It was good news for the market, and we saw that with the huge move higher. We have spent the past three days moving laterally or consolidating that move. Good action technically as we are not seeing big volume come back in and take this down with any force. No head fake on the bull on the side of the move.


When markets move laterally, it's usually because they got overbought, which we did on a couple of the daily charts, especially on all the short-term 60-minute charts. Good action when there's not a lot of price erosion, and yet we're able to unwind those overbought oscillators back to neutral or close to neutral. There's no excuse if you can't get going back to the upside from there. We shall see in the days ahead, but the bulls, based on this action, really should be able to make new highs not too far down the road. It may be the last move up, but they should be able to do so. We'll watch closely, but the technicals say it shouldn't be long before some type of move is made with upside progress attached to it.

The market faces two big challenges the rest of this year. Either one of them could put the bull market to its death. First we will deal with the debt ceiling in which the Republicans have said they will make no more concessions. Since they did on the fiscal cliff, it's now up to the Democrats to give in on spending problems. If this isn't the case, and if the Democrats say no to that, the market will get crushed. No ands, ifs, or buts about it.

The market will get hit extremely hard. Beyond that, by years end, Mr. Bernanke has said it is more likely now that the QE programs will come to an end. No more free cash such as we've seen for years now. If the Fed Bernanke does pull the trigger, and/or the debt ceiling doesn't get solved, we could see some very large losses. As usual these days, there's a ton to worry about and have to deal with as time moves along through 12013. By February we'll deal with the debt ceiling headache, which needs to be resolved by March 1 st, I believe, and then all year, when the Fed minutes are announced, we'll be reminded about the QE programs that will probably going away by years end. Sounds like a barrel of laughs to me.

For now, stocks are simply moving lateral. The S&P 500 is closing in on a breakout over 1470. A strong clearance of that level would set up a move to the low and possibly even the mid 1500's. Apple Inc. (AAPL) is trying to put in some type of bottoming stick, but maybe we need to turn our focus away from it as it has been crushed, yet the Nasdaq has hung in there extremely well. Good news for sure on that front, but it can only help to have AAPL bottom out, even if it's just for a little while. Staying on the long side seems best since all of the daily patterns are bullish in nature.
I am watching 1470 on the S&P 500 for more insight.

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 15-Day Trial to SwingTradeOnline.com!

© 2012 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