Best of the Week
Most Popular
1.U.S. Inner City Turmoil and Other Crises: Ron Pauls Predictions for 2015 - Dr_Ron_Paul
2. What’s In Store For Gold Price in 2015? - Ben Kramer-Miller
3.Crude Oil Price Ten Year Forecast to 2025: Importers Set to Receive a $600 Billion Refund - Andrew_Butter
4.Je ne suis pas Charlie - I am not Charlie - Nadeem_Walayat
5.The New Normal for Oil? - Marin_Katusa
6.Will Collapse in Oil Price Cause a Stock Market Crash? - OilPrice.com
7.UK CPI Inflation Smoke and Mirrors Deflation Warning, Inflation Mega-trend is Exponential - Nadeem_Walayat
8.Winter Storms Snow and Wind Tree Damage Dangers, DIY Pruning - Nadeem_Walayat
9.Oil Price Crash and SNP Independent Scotland Economic Collapse Bankruptcy - Nadeem_Walayat
10.U.S. Housing Market Bubble 2.0 Meet the Pin - James_Quinn
Last 5 days
Draghi's "No-growth" QE Money for Stocks, Zilch for the Economy - 25th Jan 15
Unjust and Undeclared Wars - 25th Jan 15
The European Central Bank Commits Monetary Suicide - 25th Jan 15
Stock Market ECB EQE week - 25th Jan 15
Gold And Silver Timing Is Most Important Element - 25th Jan 15
The Best Way to Invest in the Next Alibaba Internet Stock IPO - 25th Jan 15
The Outpatient Surgery Business Rains Cash into Healthcare Stocks - 25th Jan 15
Stock Traders Flock to Gold GLD ETF - 24th Jan 15
10 Reasons Why You Need an Offshore Bank Account - 24th Jan 15
Goldman Sachs Blankfein - Regulation is Like Background Noise - 24th Jan 15
Gold in Euros Surges As ECB To Print Trillion Euros and Greek Election This Sunday - 24th Jan 15
Gold Bear Market Rally or New Bull ? - 24th Jan 15
Euro-zone 'QE already Working' Says IMF Lagarde - 23rd Jan 15
ECB and EU LTRO and QE for Dummies: Or, Make These Trades - 23rd Jan 15
Debt and Deflation: Three Financial Forecasts - There's More Than Falling Prices - 23rd Jan 15
Market Should Not Doubt' Mario Draghi ECB QE - 23rd Jan 15
Francs, Bonds, Barrels, and Bail-Ins - 23rd Jan 15
Are Plunging Petrodollar Revenues Behind the Fed’s Projected Rate Hikes? - 22nd Jan 15
Stocks Bear Market Lessons from History - 22nd Jan 15
Russia's Plans for Arctic Supremacy - 22nd Jan 15
166 Trillion Reasons Why Bank Stocks Are So Cheap - 22nd Jan 15
Will Gold Price Break Out Once Again? - 22nd Jan 15
The Cult of Central Banking - 21st Jan 15
Five Stock Market Questions Wall Street Hopes You’ll Never Ask - 21st Jan 15
China's Yuan Enters the Currency "Big Leagues" to Take on the Dollar - 21st Jan 15
Investor implications of QE by the ECB - 21st Jan 15
Deflation Bonanza! And the Fool's Mission to Stop It - 21st Jan 15
Messin' With My Financial Brain - 21st Jan 15
Are Stock Market Buyouts Checking Out? - 20th Jan 15
Legal “Steroids” Are Making This Tech Stock a “Buy” - 20th Jan 15
Are Stock Market Storm Clouds Massing? - 20th Jan 15
The Swiss Release the Kraken! - 20th Jan 15
The European Union, Nationalism and the Crisis of Europe - 20th Jan 15
Swiss Say No to QE - 20th Jan 15
Gold Demand Explodes as Volatility and Fear Stalk Market - 20th Jan 15
The Truth About This Stock Market "Meltdown" Indicator - 20th Jan 15
Markets 2015 More Of The Same? - 20th Jan 15
Is Market Sentiment Shifting to Gold? - 20th Jan 15
U.S. Dollar’s Major Breakout and Gold’s Simultaneous Rally - 19th Jan 15
Silver Price Breaks Out on Swiss France Euro Decoupling - 19th Jan 15
Gold Bullish Inverse Head and Shoulders Pattern - 19th Jan 15
Bundesbank Announces Repatriation of 120 Tonnes of Gold from Paris and New York Federal Reserve - 19th Jan 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of US Markets 2015 Report

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