Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Bullish Silver Stealth Buying - 24th Oct 14
Blood in the Streets to Create the Gold Stocks Investor Opportunity of the Decade - 24th Oct 14
Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern - 24th Oct 14
War And The Law Of Unintended Consequences - 24th Oct 14
Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - 24th Oct 14
Saudi Move to Cut Oil Prices Is Now Russia's Biggest Economic Threat - 24th Oct 14
US Stock Market Top Is Now In Sight - 24th Oct 14
New Profit Points in the Shifting Balance of Power, Welcome to Saudi America - 24th Oct 14
QE Failure & Folly Of Paper Mache, Treasury Bond Integrated Lifeline Patches - 24th Oct 14
U.S. Economy Faltering Momentum, Debt and Asset Bubbles - 23rd Oct 14
Annuities - Afraid Your Money Will Vanish before You Do? - 23rd Oct 14
What Debt Deleveraging? - 23rd Oct 14
How to Profit from Massive Spin-Offs with Just One Play - 23rd Oct 14
Evaluating Ebola as a Biological Weapon - 23rd Oct 14
Euro, USD, Gold and Stocks According to Chartology - 23rd Oct 14
Why You Should Always Be Invested in the Stock Market (Even Now) - 23rd Oct 14
Five U.S. Housing Market Warning Signs Point to Real Estate Market Downturn - 23rd Oct 14
The Better Short: Gold or Silver? - 23rd Oct 14
Focus on Graphite Companies with Green Energy and Technology Strategies - 22nd Oct 14
Crude Oil Price Hitting Bottom - 22nd Oct 14
Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - 22nd Oct 14
Gold Or Crushing Paper Debt Stocks Crash? - 22nd Oct 14
India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High - 22nd Oct 14
Bitcoin Stock Exchange Could Be "More Valuable than Alibaba" - 22nd Oct 14
Currency War - How to Profit from a Stronger U.S. Dollar - 22nd Oct 14
Banks Hold Treasuries and Make Loans- 22nd Oct 14
Gold and Silver Timing is Everything - 22nd Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VII) - 22nd Oct 14
Follow the Baby Boom to Biotech Stock Profits - 22nd Oct 14
Copper, Nickel and Zinc Won't Be Cheap for Long - 22nd Oct 14
How Will We Know That the Gold & Silver Price Bottom Is In? - 21st Oct 14
Is Gold as Dead as Florida Hurricanes? - 21st Oct 14
First Swiss Gold Poll Shows Pro-Gold Side In Lead At 45% - 21st Oct 14
The Similarities Between Germany and China - 21st Oct 14
The REAL Reason Why the Stock Market Turned Down - 21st Oct 14
Petrobras is a 'Scheme, Not a Stock' - 21st Oct 14
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Stock Market Refusing To Sell...For Now...

Stock-Markets / Stock Markets 2013 Jan 24, 2013 - 10:26 AM GMT

By: Jack_Steiman

Stock-Markets

The market clearly has its head down as it's trying to stay overbought for the most part. It's been overbought quite a bit lately on two, key-time frames, the daily and shorter-term sixty-minute charts. There's a bit of selling and then the market tries hard to move back up. This process can't last forever as we all know but you can't know exactly the moment when the pullback will begin in earnest. Today was somewhat of a pullback day, even though it wasn't. Let me explain. The advance-decline line wasn't very good, but had green because just a few stocks carried the work load. Not the best action for the bulls. You want to see the majority of stocks working higher when you're in a confirmed up trend. When things get more top heavy, there are fewer and fewer stocks doing the lifting. We saw that today, but it is only one day, so no time for panic on that front yet.



International Business Machines Corporation (IBM) carried the Dow while Google Inc. (GOOG), Intuitive Surgical, Inc. (ISRG), and a bit of Apple Inc. (AAPL) carried the Nasdaq. The S&P 500 lagged because the earnings there weren't as strong. Texas Instruments Inc. (TXN) and Coach, Inc. (COH) disappointing there. With that the S&P 500 basically touched massive resistance at 1500 (1496). If AAPL is strong, we may see the Nasdaq try and carry the S&P 500 above that level tomorrow. But if it does, it will make the indexes very overbought on the daily charts. It'll all unfold as it should, but for now, the trend is higher. Expect a strong pullback soon no matter what, but the trend is higher, bigger picture.

Understand, even if you're a bear, why we keep moving higher overall. You can talk about Mr. Bernanke in many different lights, but the key thing is he has intentionally made interest rates low. He's making sure they stay low for a long time. There's just nowhere else to put your money if you want your money to work for you. His actions allow the markets to do well, and thus, keep the economy alive.

If Mr. Bernanke thought things were truly strong he'd raise rates, and thus, the market would fall over time when those rates got high enough to allow folks to be happy with those levels, thus, keeping their money in the bank. You won't be seeing that for many years. He won't do anything until he feels things are safer, so the bears are going to need some real patience before they get their next big bad swoon down. Always pullbacks along the way, but the Fed is making sure, as best he can, that the bull hangs tough in order to protect the United States from a nasty recession.

The market is zeroing in on the long-term trend-line resistance on the S&P 500 around 1500. In time, we may take it out, but keep in mind, where those daily oscillators are at. MACD's are very extended. Stochastic's are at their tops. RSI's are all at basically 70. Small-caps and mid-caps are in the 70's. Some stock leaders are near 80. It'll all snap in time to allow for some unwinding to refresh.

When it does snap, it can be pretty violent, but it does not mean the bull market is over. So please keep that in mind. You'll all be glad when it unwinds as it'll allow for more trades with less risk attached. Right now, due to those lofty oscillators there is a lot more risk to any long side trade. Not easy to short, however, as the trend is clearly to the up side. It's best to take easier until the market finds a way to unwind and refresh. The trend remains your friend, as they say, and that trend is higher. Always pullbacks.

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!

© 2013 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.


© 2005-2014 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

Free Report - Financial Markets 2014