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
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
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 Failure At S&P 500 1131...Overall Action Is Bullish...

Stock-Markets / Stock Markets 2010 Sep 18, 2010 - 08:54 AM GMT

By: Jack_Steiman


The futures were rocking higher last night. Upon waking this morning those futures held very well, and it looked as though 1131 was going to be left behind once the market opened. The bears had other ideas. The futures slowly started to gather some momentum back down on no news. The bears piling in to knock it down. By the time the market opened, things were green, but well off the highs. That didn't stop the bulls from making one more move back towards that elusive level as the S&P 500 touched 1131.47.

That was the high as the bears held where they had to once again. Too close for their liking, but they did hold the bulls down for the time being. Now, one would think that once the market failed at 1131 it would simply fall apart. Not to be as the bulls let the bears know that they have some air left in their lungs. They spent the rest of the day near the flat line on the Dow and SPX, and up some on the Nasdaq, thanks mostly to Oracle Corp. (ORCL) and their excellent earnings report last night. The bulls feel badly, of course, that they lost the battle at 1131 on the S&P 500, but they should feel pretty good knowing they didn't allow the market to just get slaughtered once that level was held by the bears. In the end, no victory as of yet, but nothing to hang their heads over. They'll come back fighting next week at some point.

The good news for the week has to be looked at from a different perspective than just points up or down on the averages. The best news for the bulls this week was the action in the financial world, especially in the semiconductor world, where things turned around decently from a technical point of view. Positive divergences on the daily charts kicked in and now the Semiconductor HOLDRs (SMH) looks decently healthy instead of dead in the water. Things really looked rough there, but now they look pretty good. This alone gives the bulls hope that we can clear through 1131 some time next week, or just thereafter. No guarantee's, of course, but the action there is definitely a sign of hope for the bulls. Without the semiconductors, or the financials, there is no way this market can move too much higher without ultimately getting whacked back down. A good start.

When looking at a market you want to take time to go over how the oscillators look on the 60-minute charts, especially on those daily charts. What the MACD process looks like, and what the RSI and stochastic's may be saying. When looking at the major index charts, we see that the oscillators are healthy overall, but soon will need to digest gains and unwind back some. Stochastic's are already overbought, but the RSI's still have some room to run if they want to, thus, we're not at the levels of overbought that say, now we must sell down. The best news is that the oscillators did impulse up with the price action, which tells me real support is behind this buying. If the oscillators weren't moving with price this market would be toast and soon. It wouldn't have even made it this far up. Bottom line is things are holding well from all levels of the oscillators.

The SPX has to break through 1131, or we're still just in the middle of nowhere, although it seems like we've done pretty well. It's not as good as it looks until that number is in the rear view mirror. There is gap support at 1113 on the S&P 500, and 1101 is the 20-day exponential moving average. Any pullback should be contained within the 1113/1101 area if things are truly healthy going forward. The Nasdaq cleared 2300 and is on breakout, but we would love to see the SPX get through 1131. Then the bears would really be up against it. Until then we play slowly, but with exposure. Day to day we learn, and day to day we play appropriately as possible. If we end up losing 1090 on the SPX then things have a strong chance of heading back down to the bottom once near 1040. Things still look fine overall.



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 constitutinginvestment 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