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
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 Holding Well.....

Stock-Markets / Stock Markets 2015 May 05, 2015 - 10:08 AM GMT

By: Jack_Steiman


So yes, we saw yet another failure today when the S&P 500 got back to 2119, and turned south, but it didn't turn south very hard. That's good to see if you're bullish. The market is trying to hold up better on this latest test of the usual 2119 S&P 500 area. The oscillators on the daily chart are actually bullish with the stochastic trying to turn up from the 50's. Add in the MACD not too elevated, and the RSI in the 50's, there really are no excuses for the bulls. It doesn't have to break out on our time meaning the immediate, but it is set up pretty solidly for the bulls.

Nothing overbought. Nothing flashing oscillator inappropriateness. The bulls have it if they want it. This doesn't guarantee anything. We can only hope the market won't sit around all week waiting on Friday's Jobs Report. If that's the case, it will be a very boring week, and the bulls will need to come up with the perfect report. Not too hot, and definitely not nearly as cold as last month's report. If I'm a bull I would love to see the market make the breakout now, and not have to depend on the Jobs Report getting the job done. It could, but I wouldn't want to have to count on it. It has been disappointing lately, so let's hope the bulls rock this thing before the big report.

After two gap downs that looked like the end of things for the bulls, they have now established multiple gap ups to put those gap downs out of the picture. That didn't seem possible to be honest, but you never put anything past the bulls in this froth driven market. The gap up today held. That's very important, because it's occurring right in front of the breakout. Gap ups from well below matter as well, of course, but when you establish a gap up that holds in front of the big breakout level it makes it tougher for the bears to knock the bulls down in the short term.

Gap ups are important, of course, more than just about anything else, but it really does make a difference where these gap ups take place. It often makes a statement about what's on deck. About what's about to take place. Never a guarantee, but this gap up on top of the previous ones just below puts a lot of pressure right now for the bears to respond, or they know they're in big trouble. Bears back off when they have multiple gaps strung consecutively, but they'll be sure, one would think, to at least try here. It's do or die time again. This time for the bears.

When you have a large number of negatives on hand, and the market refuses to fall, and then you add multiple gap ups near the breakout, you have to assume the move will be made. No guarantee, but you need to ask yourself without emotion, why is this happening? When a market wants to do something it does it without interruption from outside activities. Head down is head down. The market will ignore what it needs to and right now in this moment it's doing a lot of ignoring to be sure. So many problems that are being swept under the rug.

The bears can still be hopeful, since we have no breakout yet, but it has to be so tough to be on the dark side of the trade. I actually feel for the bears. It has to be beyond frustrating. So for now, if you're a bull, you sit in disbelief that we're so close to breaking out with solid oscillators in place but you know to take nothing for granted in this game meaning see it, and then respond. Responding too soon has been a disaster as many of you can attest to. There have been many moments that said the breakout is imminent only to see big gap downs. Be careful and be smart. A blast through 2119 and a close that way is the key.



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!

© 2015

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 - 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