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
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
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

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Greece and Stock Market Divergences.......Transports Ugly....

Stock-Markets / Stock Markets 2015 Jun 25, 2015 - 11:32 AM GMT

By: Jack_Steiman


The market was gapping down just a drop heading in to the trading day. Nothing to get upset about but, then came the news many didn't want to hear. Talks regarding Greece breaking down, which is not unexpected. The futures fell further still and down we went. Gap down and run for the most part. Not a terrible day by any means. Not a bearish day big picture by any means, but it was a decent down-day with Greece being one part of the equation along with negative short-term divergences being the other culprit. They were pretty large, and, thus, some selling could have been expected.

It would not have been nearly this bad today if not for the bad news from Greece but some selling was likely in order to work that divergence off. So the market once again lower and yes folks, the six month base continues ever onward. Annoying for sure, but that's life in this game. No end in sight, although the right tonic out of Greece would likely do the trick for those frustrated bulls. In the end today was a normal day in the large pattern to nowhere. Get close to the top at 2134 and fail. Wash, rinse and repeat. Now we'll see just how far down they take this beast. Nothing has been nor will it be easy. When Greece is finally out of the picture things should return more to normal, which sadly has been the same old market to nowhere, but at least the risk lessens. A day at a time folks.

The biggest headache for the S&P 500 in terms of breaking out has been the behavior of the transports, led down mostly by trucking and railroads. The bear market there continues. The airlines aren't nearly as bad, but that one area isn't strong enough to carry the rest of the sector out of its misery. The transports are going to need to bid soon, and it's not hard imagine they will recover in the not distant future since most of the companies inside that index trade at very low P/E's. If they get down enough they start to become more favorable to those who want good longer-term holdings.

For now, however, it's not in good shape and need to turn to help the S&P 500 out and get it on equal par with the small and mid-cap stocks along with the Nasdaq. The lagging is getting quite intense. The banks are also a bit elevated. Nothing bearish but they had run up quite a bit before some of the nastiness there today. The need to unwind along with the risk from Greece caused a strong pullback in many of those leading stocks but still nothing bearish. If Greece was resolved this evening they'd blast back up but if Greece does default there will be some real carnage in that area of the market. Just recognize there's some risk short term in the financial's if the wrong news hits out of Greece. The only real bad area at the moment, as i just said, is the world of the transports.

Bigger picture nothing has changed. We know the only two levels that really matter for the longer-term health of the market. A loss of significance below 2040 on the S&P 500 would be quite bearish, while a strong close over 2134 would be quite bullish. Any and all trades in between are merely noise as we wait for the winner to take a stand. Risk is higher than usual short term so pulling in the number of trades makes sense but do what feels right to you of course. I would keep things on the lighter side of the ledger. The market clearly wants Greece to go away so it can resume back to normal activity which should be more favorable to the bulls.

Day to day.



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.

© 2005-2019 - 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