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
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 Waiting on Yellen....

Stock-Markets / Stock Markets 2014 Feb 11, 2014 - 09:55 AM GMT

By: Jack_Steiman

Stock-Markets

The market is sitting pretty much on the 50-day exponential moving average on the S&P 500. It will be very important for the short-term to see if we can break back above, or whether these 50's cause the next move lower. The answer to that may come, to some degree, tomorrow morning when the new Fed President, Ms. Yellen, gives her first speech to Congress. The world wants to know her future stance on tapering, and on those extremely low rates in the short- and long-term worlds. Once she finishes her speech the grilling will begin. You get the feeling Congress won't have much mercy.


The questions will be tough, and she'll have to prove she's up to the task. I'm sure she'll do fine. However, the market wants answers. If the economy continues to weaken will she taper the taper? Will she taper no matter what happens with the economy? Will she keep rates low, near zero, and for how long? What would change her mind? This will be very interesting banter and we should all listen in, so we can get a true feeling of what we can expect of her in the years to come. Bernanke is no more, and thus, the market wants to know if she'll follow his process in place. So expect the fireworks to come fast and furious tomorrow. It won't be a boring day, even if it's a bad one for the bulls. Stay tuned as things are about to heat up in a big way.

The bull-bear spread has come down quite a bit. Not as much as we may ultimately need, but the chance of a rally higher does exist in the very short term. On the SPY, that would be gap bottom at 181.66, if this market breaks out above S&P 500 1797 with force. With the spread at 28.5% heading in to this week, after being as high as 46%, you have to think a move higher is possible, but by no means does it have to take place. It would fool the masses though as many are thinking we can't break above the 50-day exponential moving average here on the S&P 500.

A move above would really keep folks guessing about what's really taking place here and we know that the market loves to do that to the masses. It gets a big laugh out of the way we're all trying to figure it all out. It laughs at our emotions as the market swings about every single day. So a break above the 50's would really create havoc with just about everyone. This will only happen if Yellen says all the right things. So we have to wait and see.

181.66 is key resistance on the SPY. On the S&P 500, watching 1775 gap support. Those are numbers to watch that, if broken, can create a more directional move. Until then it's noise. Lots of noise in this game, and that's what creates all the emotion as we swing about. Keep things light, but being involved is not a bad thing. If we fall on Yellen's words early tomorrow it'll be interesting to see if we can recover late. Again, tomorrow will be very interesting.

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!

© 2014 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