Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Indices Witness Strong Selling

Stock-Markets / Stock Index Trading Mar 23, 2009 - 12:46 AM GMT

By: Jack_Steiman

Stock-Markets Best Financial Markets Analysis ArticleAnd this is because the Sp and Dow failed at their 50's and the bulls couldn't stop the same old which has been to fall from those 50 day tests. The Nas and Ndx cleared it but now the Nas is slightly below. Nothing terrible but a few points below and it's not great to see similar behavior as we have seen for this entire bear market. Get to the 50's with some indexes clearing the 50's and then things just fall apart. The bulls need to take a stronger stand than this. The rally so far has been on excellent internals and this has kept the rally going but it's time for the bulls to step up here or we're headed right back down.


They need to create a change of character which again, would be to stop the intense selling when we get to those 50 day exponential moving averages. It's very easy to get bearish when these events take place at the 50's and to some degree it's understandable but you have to look no further than the daily and weekly charts to know there is more of a chance things won't fall apart this time as they have every time we've seen this take place since the bear market began in October of 2007. So are we headed back to the old lows all over again Emotionally it feels that way but I am not at all convinced. A very critical time is upon us as we head in to Monday as the bulls need to make their stand right here and right now and not let that 50 day moving average headache get any further away from them as it has due to today's action. Stop the bleeding here and now or watch this all go away.



The market started out to the up side today but that didn't last very long as the selling kicked back in following yesterday's move down. The overbought 60's were certainly in need of deeper selling thus it shouldn't have come as a big surprise but what was disturbing was how the selling accelerated slowly but surely throughout the day. We closed very close to the lows and this too is disturbing as the short term charts, which include the 15, 30 and 60 minute charts, are all deeply oversold now yet they couldn't get the market to bounce but for a few minutes. These deeply oversold short term charts should provide some type of bounce early on next week but that bounce needs to hold. Another strong day of selling will put the entire bottoming scenario in doubt.



The good news is that what needs to lead is still leading. The Nas/Ndx are showing the best relative strength and leaders such as Apple (AAPL), Amazon (AMZN) and Google (GOOG) are holding up extremely well throughout this selling episode. If they start to crack early on next week then the bulls can start bowing their heads in defeat and this rally will just about be officially terminated. Strong patterns exist on all of the leaders, including Goldman Sachs (GS) in the financial sector so it's really now or never for if the market can't bid, these stocks will start to erode and again, it's lights out for the bulls. Let's watch those stocks very closely on Monday and Tuesday for more insight.



1440 is now support on the Nas as is 757 or the 20 day ema then 741 down to that gap at 734/729 on the Sp. The selling needs to really stop before it tests 741 but if got there, that would need to be held or things would be falling apart rapidly. The Sp took out multiple resistance levels with very powerful internals and with some genuine accumulation thus it's hard to imagine things just falling apart here. 800/805 Sp, 7500 Dow and 1495 Nas are the breakouts. If these get taken out the market will rise very quickly. The shorts will know they have to cover and things could get frothy but for now, the concern is more for these major indexes holding their support levels.



The Vix had a head fake breakdown but it occurred when it was extremely oversold the same way the markets were extremely overbought on all the short term time frames. That no longer exists. I'll talk about that in a moment. The Vix has held where it needs to unfortunately for the bulls although it's far from healthy overall. The Macd is lagging some but for now the bulls know that the bears held critical support on the first test down which is normally the case. If additional selling takes place in the market the Vix will rise further making the breakdown less and less likely. Again, the bulls need to get going here. The Sp. Dow and Nas are now oversold although not at extremes on all the short term time frame charts meaning the 15's, 30's and 60's. Here are the numbers. On the 60's, the three major indexes are averaging stochastic's at 7 with Rsi's at 44. The 30's and 15's have slightly higher stochastic's but Rsi's in the 30's. Getting down there and some type of bounce will be needed sooner than later. Watching the nature of that bounce will be critical to understanding where this market is in terms of this particular bear market rally. Over or still more to go. We'll know soon enough.



We've been fortunate these past many weeks and months. Jacobs Enginerring (JEC) got caught up in some very bad news from Fluro (FLR) which lost a $2 billion contract and thus the whole sector got crushed from the typical guilt by association nonsense. No excuses. it is what it is. Can't get them all. It has been a great run overall and we'll be sure to get very defensive if the market flashes a sign that says the current bear market rally has ended. The early part of this week will be very telling for sure. Slow and easy as always.

Peace,

Jack

By Jack Steiman

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 30-Day Trial to SwingTradeOnline.com!

© 2009 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.

Jack Steiman Archive

© 2005-2019 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

6 Critical Money Making Rules