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
NVIDIA THE KING OF THE METAVERSE! - 10th 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
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th 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
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
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 Support Holds...For Now...

Stock-Markets / Stock Markets 2013 Jun 09, 2013 - 08:47 AM GMT

By: Jack_Steiman

Stock-Markets

The markets sold hard for a couple of weeks and when they hit the 50-day exponential moving averages on the key index daily charts they found a way to bounce which is not a great shock since some short-term charts got oversold. The combination of those 50-day tests and oversold sixty minute charts gave us a nice bounce. The real question on everyone's mind is whether the market has seen the lows from this correction or whether there's more to come once this bounce is over. There are a few ways to look at it. It's possible that the market will just whipsaw about for some weeks as the MACD's try to improve their current position.


The problem for them in the short-term is that on any move higher, if we got back to the old highs, we would see massive negative divergences form. Not little ones, but again, massive ones. That would most likely stop the move up. The other possibility is we get another strong move lower soon where the MACD's hang in well. On a bottoming stick the lows would be seen. Of course, there's no way to know for sure, but one thing can be said and that is that the MACD's aren't looking great right here. We can try higher still, but they are saying don't get aggressive with longs. Just respect the message and all will be fine.

The futures were flat heading in to the Jobs Report this morning pre-market. Everyone was wondering if the Jobs Report would mirror the ISM Manufacturing Report, or whether it would show a surprise to the up side. The rate did tick up, but the jobs created, although mostly temporary jobs, was a bit better than expected. The market, oversold already, was ready for a rally, and thus, the futures rocked up and the rally was on. The indexes flirted with the back test of the 20-day exponential moving averages and after a few early failures, was able to get through. It did get back to them late in the day but a late flurry up rocked the S&P 500 well over those 20's which were at 1634.

It's nice to see that take place and add in that the market now has a nice strong gap up in place, which, of course, will make things a bit tougher once again for those bears. The gap up never got filled by the bears so it is open. Open gaps to either side of the previous days close is never good news for the party on the opposite side of that trade. Did I mention we're in a bull market? We are, and thus, you can't be shocked when a market reverses from heavier down-side action over a few weeks. When no one thinks it will go up it does and today was one of those bull market lessons for the bears. The Jobs Report and oversold the catalysts, and now the bulls have a little protection from the gap up.

So let's talk about the Jobs Report and the effect of it on the Fed, and therefore, our stock market for the short- to mid-term. Bull market rage on when you have Fed governor's flooding the system with cash. The economy would have to show significant job growth on a sustainable basis before he removes the free cash. That's what he has said time after time. Today's report was not what he wants to see. The majority of jobs created were of the temporary variety, and that's why we actually saw the rate of the unemployed tick up to 7.6%. 7.5% was the expectation. This is not at all what the Fed wants or needs to see. His stimulus continues to not work. While he'd like to stop, due to the ramifications of all this cash, he simply can't. He knows he's causing more inflation than anyone would like to see, but he's really at a loss on what to do to help this economy to rock higher.

So today was yet another shot against the bears bigger picture. The news today along with a recession number at 49.0 from the ISM Manufacturing Report tells the world he's nowhere near ending the ridiculous cash flow. Again, market protection. Cash has to go somewhere. With rates near zero, and staying there, it's the same old. Nowhere else to put the cash people want to have for their future retirements. CD's won't get it done. Interest rates not getting it done. The best chance for reasonable gains only comes from the stock market. The Fed will work hard to be sure the economy survives through higher stock market prices in the months ahead. At least, that is his hope and will not give the bears any ammunition to bring things down too hard. The bull is alive. That said, things can still go down quite a ways from here after this rally ends.

One day at a time.

Have a great weekend!

Peace,

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!

© 2013 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.


© 2005-2019 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