Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17
The Socionomic Theory of Finance By Robert Prechter - Book Review - 18th Jul 17
Ethereum Versus Bitcoin – Which Cryptocurrency Will Win The War? - 18th Jul 17
Accepting a Society of Government Tyranny - 18th Jul 17
Gold Cheaper Than Buying Greek Villas in 2012 - 18th Jul 17
Why & How to Hedge the Growing Risks of Holding Stocks - 18th Jul 17
Relocation: Everything You Need to do for a Smooth Transition Abroad - 17th Jul 17
A Former Lehman Brothers Trader: It’s Time To Buy Brick And Mortar Retailers - 17th Jul 17
Bank Of England Warns “Bigger Systemic Risk” Now Than 2008 - 17th Jul 17
Bitcoin Price “Deja Vu” Corrective Sequence - 17th Jul 17
Charting New Low in Speculation in Gold and Silver Markets - 17th Jul 17
Bitcoin Crash - Is This The End of Cryptocurrencies? - 17th Jul 17
The Fed's Inflation Nightmare Scenario - 17th Jul 17
Billionaire Investors Backing A Marijuana Boom In 2017 - 17th Jul 17
Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - 17th Jul 17
Gold and Silver Biggest Opportunity Since Late 2015, Last Chance at These Prices - 17th Jul 17
Stock Market More to Go - 17th Jul 17
Emerging Markets & Basic Materials Stocks Breaking Out Together - 16th Jul 17
Stock Market SPX Uptrending Again After Microscopic Correction - 15th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

Stock Market Refusing To Sell At Overbought...

Stock-Markets / Stock Markets 2016 Mar 22, 2016 - 06:21 AM GMT

By: Jack_Steiman

Stock-Markets

The market was overbought on many of the index charts going in to the weekend. One would expect the market to pull back from overbought, especially when the overbought conditions were on both the short-term, sixty-minute charts and the daily charts. When that happens it's usually a short-term top and down we go. Not today. The market is refusing to fall with any force. The bulls are back and back in full force, and dare I say, full froth. Markets are all about emotion as we all know by now. It's not about truth or reality. It's about the flavor of the day, regardless of what may be happening in the real world. The flavor of every day seems to be BUY!!! No matter what, BUY!!!!!


Good news is good news. Bad news is good news. Really bad news is good news. It doesn't matter. It's all good for now. Goldman Sachs (GS) is under investigation for manipulating markets today. The result? Down a drop. Chart is still very decent. In normal times it would be the type of news that could really hurt a stock.

Now, there's basically nothing that can hurt anyone. Caterpillar Inc. (CAT) warned last week. It was down four dollars pre-market, and finished up over a dollar. Nothing can hurt anyone it seems. It's all about emotion. It is what it is. It's all about the fed. It's all about low rates and lots of stimulus from the global central bankers. That's all anything is about. The bulls love fed protection, so again, everything is good news. No end on the horizon on that level as far as I can tell. It'll end someday, but no sign whatsoever at this point. That can drive a bear nuts. I actually feel sorry for them. They have to feel so whipped. They get all the news they would need under normal circumstances, yet they still can't get any love. Hug a bear, if you see one. Send them your condolences. There's nothing more you can do for the poor souls. So today was yet another day of defying logic and anything else you can think of. The bulls win, but there will have to be some selling soon. I think!

The short-term, sixty-minute charts are flashing some small negative divergences. Will they matter? They should. They don't have to. It can be worked off laterally, but we shall see tomorrow. Those divergences are fairly immediate ones, thus, we should get some selling now, but again, in this market who knows. Sixty-minute divergences are not bearish bigger picture, but they can bring a small amount of pain in the immediate future. There's some support at the 2044 gap breakout, and again at 2020. Can we, dare I say, sell 1-2%? Oh no, not 1-2%! Well, maybe we can, and we should, but we shall see. Another gap up wouldn't shock me, but if we do, we'll get even more overbought and create and even bigger negative divergence. But that shouldn't stop the bulls from trying anyway.

Even though the bull/bear spread is only about 20-22%, it's as if it's 45% as the bulls are as frothy as they could ever hope to be. Tomorrow is important. In the real world we should be ready to sell a bit. If we go lateral and work off the divergence, we'll go higher still as the week moves along. 2080 is big resistance. You learn a lot about the future by watching how the markets pulls back its oscillators, along with price once negative divergences exist. The next day or two will tell us a great deal. For now, we play this market for what it is and what it is is bullish. The bears have to prove it's not. Simple as that.

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!

© 2016 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.


© 2005-2017 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

Catching a Falling Financial Knife