Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

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

Stock Market Do Or Die Dead Ahead....

Stock-Markets / Stock Markets 2014 Oct 25, 2014 - 03:05 PM GMT

By: Jack_Steiman


When a market corrects hard there is only one normal way retrace the move back up to unwind oversold conditions and test lost 20- and 50-day exponential moving averages. You take weeks to do it, and you do it slowly and gradually without any large gap ups. The S&P 500 now has three gap ups with two of them over a ten handle. Very unusual for a back test and makes you wonder just what's going on. It's basically almost a v bottom for now. On top of that we have MACD crosses on the daily-index charts from very low positions, which, of course, is far from a bearish set-up. With all of this I remain open. I thought for sure there would be another large, hard move lower in the market and that may very well still be the case.

The market is NOT safe by any means but the action just isn't bearish, at least for now. We could still go quite a ways down but you ask yourself why are the oscillators even better than price. They just shouldn't be. Oscillators should lag price allowing us to understand how weak the move is off the lows. We're seeing the opposite. I don't have to understand it, and, again, I don't so I remain open to both sides of the coin when recently I thought there was only one side to focus on. Never bury yourself in a belief. You may think something is going to take place, but you need to adapt or adjust to whatever is taking place. For now, while I think another move down makes sense, and a hard one at that, there is still the possibility that the market has finished its dirty deed of selling hard. A day at a time.

Mark it down on your computer. 1975 on the S&P 500 or the long-term uptrend line. That's the level the bulls now must focus on if they're to ever see the old highs at 2019. The bears should try, one would think, to throw everything under their powers at that level should we visit it some time next week. It is extremely unusual to lose such a critically important level of support only to come right back and get through on at least the first test, if not the second or third. One would expect a large move lower once that's tested but again, oh those darn oscillators. I'm using nice language.

They are strong, thus, it's not impossible to get through, but our only focus, and I mean only focus, is S&P 500 1975 on a closing basis and if you get through you don't want to clear by a couple of points. Some volume along with a strong move above on a closing basis is what the bulls need. These are very interesting times. It doesn't make sense to get through 1975 and the majority of folks are thinking the same way, trust me. Maybe that's good for the bulls, but some very smart money, one would think, is readying to short that level. We will find out soon enough. Again, very interesting times. Do or die is upon both sides.

Froth has calmed down. The bull-bear spread at 17%. Bears still too low at 18%. The AAII is still very bullish. So yes, froth has calmed down, but it's far from perfect and again, one would think more lessons have to be taught before the selling stops. 17% really is great, but, normally when you are at 17%, you have 25% bears and, thus, I'm still not excited. 17% is better than 46% to be sure. So pick your spots such as we have from time to time but don't get overly excited, especially since we also have the critically important fed statement on Wednesday. A very intense, massively important week is upon us. Buckle up. It should be an explosive, volatile week.



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 15-Day Trial to!

© 2014

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

6 Critical Money Making Rules