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

Stock Market Trend In A Word, Awful...

Stock-Markets / Stock Markets 2010 Jun 15, 2010 - 05:00 AM GMT

By: Jack_Steiman


What more can be said for a market that makes its fourth try at critical resistance with a positive divergence in place and spits the bit. Hard to believe how bad the market was today considering what was set in motion. If this was a head fake lower, what a fake it was. Bearish action for sure. We started out with a gap up that took us to that magic number once again at 1105 S&P 500. The market looked poised to take it out but we were very overbought on the short-term 60-minute charts where we saw 70 + RSI's and 90 + stochastic's. MACD's top side as well.

Some selling was due for sure, thus as we started to pull back off 1105 it made sense to me. However, to see the markets finish basically red blows ones mind. The Nasdaq finishing forty points off the highs is sad action for the bulls to say the least. The market closed on the lows, which is also terrible action. The 60-minute charts have unwound, but falling this far off the top is not great news for anyone who is bullish. Makes you wonder just where we truly are in this market. Doesn't look good but you never know for sure.

The reason you never know is we are still trading in that range from 1040 at the bottom to 1105 at the top. Never has a range been so easy to understand from a point perspective. Triple bottom at 1040 (1040/1044/1042 in order) and 1105 at the top, reached now four times. It's normal to put in a right shoulder off the head-and-shoulders pattern, but that would require a break above 1105 and we just can't get it done. If we got through we'd have to deal with resistance at the 50-day exponential moving average at 1120, but at least that gives the pattern some symmetry. Not perfect but some. 1140 would be about right, but it doesn't look like the market wants anything to do with 1140. If the right shoulder is this weak or really non existent, just how weak are things one has to ask!!

So the fight is on at 1105 down to 1040. The bears had no trouble putting the bulls in their place yet again and now the bears need to follow through on their easy save today and take this market back down in a big way. You'd think they'll make at least some attempt after today's action. The bulls were pushed around so easily you have to think the bears are ready to try yet again. Each side has the onus of getting the job done. The bulls failed badly. Let's see what the bears can do now. If they gain no traction, we're likely stuck for a longer time still in this horrible trading range that's really no fun whatsoever. On everyone's nerves, bulls and bears alike.

The internals today were interesting. Although the market stunk up the joint as they say, the advance/decline line was positive. 24/14 positive on the NYSE and 14/11 on the Nasdaq. Not great but positive, meaning more stocks participated on the long side than the action would make one think after looking at how the market deteriorated as the day went along. This too gives the market some hope. It's far from being wonderful news for the bulls but at least they can say that more stocks performed positively than not on a day where we saw terrible overall action.

Folks, today was bearish, but it's also too early to be a bear. Only when we lose 1040 with force can we know we're in a bear market. The problem is, on any move down below 1040 S&P 500, it appears almost certain that the daily charts will print yet another positive divergence. This complicates things because you have to wonder how hard the bears will step on it knowing they'll be running in to positive divergences. Time will tell, however, for now we remain in this awful trading range with no one in total control but with the bears still having the overall advantage below 1105.



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 21-Day Trial to!

© 2010

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