Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Closing In On S&P500 1850...

Stock-Markets / Stock Markets 2014 Jan 23, 2014 - 11:07 AM GMT

By: Jack_Steiman


The S&P 500 has refused to give it up. It's in a trading range from 1812 support horizontally to 1850 resistance, which is also horizontal support. It's a 2% range, and within 2% can come a lot of emotion. However, it's been riding off the 20-day exponential moving average lately currently at 1833. This tells me the bulls are readying themselves for another move up, so the bears better get busy and fast. If we can clear 1850, and close above with a little force, it means the bears will have to take inventory of what they're holding. That also means they will likely want to lighten up, thus, some added fuel from short covering.

We have tested the 1849 and 1850 on four different days. The bears have clearly set up shop there, while the bulls, again, have set up shop at the 20's or 1833. The 2% range has recently tightened up to a 1% range. When studying the daily chart, it is important to ask yourself if the technicals are saying it's possible to make that breakout move over 1850, and there's nothing there to say it can't. It certainly doesn't have anything to due to sentiment, but the technical set-up would allow it. So here we are again with the market needing to sell, but things setting up bullish. It's never dull to be sure, and there's a guarantee we make that breakout move, but the bears are sweating for now. Just don't forget that nothing is coming easily here.

Sentiment is not helping again. It rose back up from 40.8% to 42.5%. It's not at the most recent highs, but it is in terrible shape. No question that liquidity, along with short- and long-term rates continue to help the bulls, but you have to fear the sentiment readings we're seeing day-to-day and week-to-week. There has to be a price to pay at some point, but it's not our job to guess when. Your job and my job is to stay with the trend as long as it holds up knowing that we'll get hit with our longs at some point.

But you keep some long exposure until the bears can prove that it's time to get rid of all longs and move to cash or to the short side for a short period of time. I was hoping that last week's-market action would push the spread down to the 37% range, or thereabouts. I was dead wrong as it rose to 42.5%. Oh well. We have to deal with reality. It doesn't mean run for the hills. It does mean to stay away from froth. It also mean some light exposure is fine. Sentiment is still on a sell signal, so please don't let your guard down, even if we have another move above S&P 500 1850 for the short-term. Respect the game, or you'll pay dearly.

This earnings season has been a disaster. However, this evening is a good one. F5 Networks, Inc. (FFIV) on eBay Inc. (EBAY) and Netflix Inc. (NFLX) hit home runs. Three big technology stocks that lead and will help the market short-term. It doesn't mean the market will make the move up and out, but it was good to finally, and I mean finally, have a good night of earnings. The worst quarter in my memory, but hopefully tonight will be the start of something better for the big leaders still to come. You have to believe that the market is going to need some big nights to keep this going.

Bottom line is we finally have a good night. Will it be the catalyst to get the S&P 500 over 1850 tomorrow? We shall learn about that soon enough.



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!

© 2014

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.

© 2005-2019 - 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