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

Fed Minutes Bring The Stock Markets Lower...

Stock-Markets / Stock Markets 2013 Nov 21, 2013 - 04:22 AM GMT

By: Jack_Steiman

Stock-Markets

And that's not a bad thing at all. It wasn't a crushing blow lower, but it was a nice, solid move lower as the market used whatever it could in terms of an excuse to sell things off a bit. Mr. Bernanke spoke about keeping rates low basically forever, but some talk of tapering sooner than later, especially through the foreign banks, gave the market an excuse to sell lower.


It needs it so no complaints here as some unwinding would be so helpful to getting folks a little more pessimistic. I, for one, would love to hear that things are about to fall apart, and doom is upon us. It doesn't take long to get folks unhappy about the future, so today was a nice start but now we have to see if those Fed minutes are just a quick non-event, or whether the news from the Fed will start at least a reasonable selling episode for a while to calm things down from a sentiment perspective.

The market, as usual, was grinding its way a bit higher before the selling finally kicked in. It wasn't blasting off, but there were a few sellers starting to quietly come in roughly thirty minutes before the report from the Fed came out. Nothing major, but some folks started their selling ahead of the Fed, since they believed, and probably rightly so, that a lot of good Fed news was already baked in. If he had said everything perfect for the market it's hard to imagine we would have lasted higher, but we'll never know the answer to that now, will we.

It's good to see some selling, but the selling stopped basically at the first important, but not critical, support level of 1775. The bears are still not able to get things rocking lower, but at least the minutes gave the first excuse in a while to sell some off the top. Maybe the bears can build on it, but we'll see if the market can get a strong gap lower tomorrow to set some real selling in to motion. We'll know soon enough. Thus far, the bears have been unable to get it done. Now they have their best chance, but let's see it before reacting to it. The onus is on the bears to make a change in the short term trend.

1775 is first up for the bears. If they can remove the breakout level that 1775 represents then they can start focusing on some exponential moving-average prices, such as 1768, which is the 20-day. 1750 is trend-line support, followed by strong-gap support at 1737, and finally, the horizontal-key level at 1730. Bigger picture, only if we take out 1730 can we expect a much stronger-selling episode. That would tell us sentiment is kicking in harder. For now, keep things very light on either side of your playing as shorting won't be easy either.

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.


© 2005-2022 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