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
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
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Bulls Capture S&P 500 1105......

Stock-Markets / Stock Markets 2010 Jun 16, 2010 - 01:31 AM GMT

By: Jack_Steiman


So the range between 1040 (3 tests) and 1105 (prior to today, 4 tests) was finally broken to the up side by the bulls. Fifth time the charm. Didn't come easy. Yours truly sadly shaken out along the way. It was tough. It gave more head fakes than one could possibly imagine would be possible. Yesterday being the latest of those head fakes.

The futures slowly, but surely, improved throughout the morning today, although the bears would make their attempts to keep things down but it didn't work. We were able to gap up and from there the story was an interesting one. 1100 was acting as strong resistance and then it crept higher to 1102 as the morning wore on in to the early afternoon, and then boom! 1105 was gone.

The bears tried so hard all day to keep the bulls out of this important level of resistance, but they just couldn't stop the bulls, due in large part to some powerful shorts taken on the past several days as evidenced by the action in the options market. When loads of puts are the play of the day so are shorts. The past week or so has seen several days of very high put call ratios. Today it came home to roost against the bears. Too much pessimism.

As the day wound down the S&P 500 made sure 1105 was taken out cleanly, closing on the highs and only four points below the 50-day exponential moving average at 1119. A good day for the bulls who now at least have some hope that we've seen the bottom in this pullback, but by no means is that a guarantee. More on that later.

The internals spoke today as they did quietly yesterday. Yesterday I mentioned that although the markets had a poor day on price, it had a decently good day in terms of the advance/decline line. 24/14 positive on the NYSE and 400 more advancers than decliners on the Nasdaq. Today, we saw price confirmed both by the advance/decline line and increasing volume. 5/1 advancers over decliners on the NYSE, and 4/1 advancers over decliners on the Nasdaq.

It's very important when we try to break through critical resistance or support that its done so with strong internals. No one would argue that today those internals were indeed strong as we crossed over 1105 on the S&P 500. The bulls have hope. Nothing more than that though. Just hope but no guarantee that things will play out from a bullish perspective as the months move on. However, hope is definitely a good thing when just a few days ago things looked dire.

So, now we look ahead and ask ourselves what exactly is next up for this market. I can tell you quite assuredly that it won't be easy for the bulls from here although we'd like to think it will be just because we finally made it through 1105 on the S&P 500. We have loads of resistance dead ahead. We start with 1119 or the 50-day exponential moving average. Tough resistance in its own right. Not as tough as 1105, but now we're very overbought on the short-term 60-minute charts thus getting through on the first try will be next to impossible. If we weren't overbought we'd likely fail on the first try.

However, it's hard to imagine the bulls giving away 1105, so we may be stuck for a short time trading between 1105/1120 or a drop higher on a breach. 1105 should hold all pullback's short-term if things are truly on the improve for the bulls. After 1119, we have the January right-shoulder high at 1150. That will be extremely tough. One step at a time. Let's see how long it takes the market to get through S&P 500 1119. If it can do that before losing 1105, and it should, then 1150 or close to that level, is a real possibility.

I want to remind everyone that we are about to get some reality thrown our way. Earnings season is close at hand and if it's anything like we saw out of Best Buy Co. Inc. (BBY) today, this market is in deep trouble longer-term. Horrible earnings there with the stock hit very hard on the news. Things seem to be slowing over the past month. We are seeing that in economic reports and from the likes of Best Buy, and thus, we need to be on heavy alert for some real disappointments from CEO's who thought the worst was over on their earnings report from last quarter. Many raised the bar for the year and for this quarter coming up, so there better not be any disappointments or there will be some nasty blood letting. This is not the time to be out there buying hand over fist. slow and easy is the ONLY way to be playing this incredibly difficult market.



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