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
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
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

Fed Market Friendly As Usual.... Stock Market Caring Less And Less....

Stock-Markets / Stock Markets 2015 Jan 29, 2015 - 01:28 AM GMT

By: Jack_Steiman


If you've noticed over the past many weeks and really two to three months, the market hasn't had the ability to break out to new highs. We've seen dramatic, if not historical, measures taken by the ECB with regards to unprecedented levels of free bank cash with a new QE program of over one trillion per year, not to mention that it is open ended. We've seen our Fed, Ms. Yellen, today say rates will stay low. That she has the markets back. Of course, those aren't her exact words, but they sure are implied, and the market knows it. The markets initial reaction, as always, was to try higher. It always tries higher. This time higher didn't hold. More and more measures are being taken globally to prop up markets and their respective economies, but the measures taken are having less of a positive effect.

Let's face it, if you flood banks with cash but no one takes it, what good is it. Economies simply aren't recovering. It's too hard to get the loans, and they should be, and most folks don't feel comfortable enough to take the risks. We had a horrible durable goods report this week. 3.7% below expectations. That's more than just a normal miss. One can only imagine how bad things would be if Fed Yellan didn't take these actions, which of course, she shouldn't have. Let things heal naturally, but not on their guard anyway. So, bottom line is this, after the Fed spoke today the market fell, and it fell pretty good. Nothing earth shattering, but a drop that was clearly noticeable both in price and for the little effect Ms. Yellen had, even with her words of market wisdom.

During any given earnings season most of the big cap leaders perform fairly well, but even more important than that, even if they don't, they are graced with a pass. No worries, we'll let you go up because we're in a bull, and we're sure you'll get your act together shortly. There's no damage no matter what you're reporting to the street. We're not seeing that any longer. If you do well you are rewarded. That said, if you don't, you get smoked in a big way. No more free passes. No more mercy. Of course, that's the way it should be, but isn't until you reach a point of too many bulls.

Also, when you're looking into the face of some terrible looking weekly- and monthly-index charts. A heavy weight on the market. While no one is truly in control, if more and more stocks fall on their reports, then it'll get harder and harder to imagine a breakout for equities as a whole. The ones that are failing are heavily weighted so it'll be tough. Recognize that Apple Inc. (AAPL), which is very heavily weighted, and was up big on their report, couldn't even keep the Nasdaq green today as the advance-decline line was very poor. Just not enough other heavily weighted stocks to keep it going. This reality is yet another concern for the market.

So yes, we're back below those key 50-day exponential moving averages but to be blunt, it really doesn't matter yet since we're not far enough below to make it a real breakdown. We've had now four attempts to stay below those key 50's. We went right back up and through the past three times. Will this time be the same? Unknown, but the job, as I've said, is getting tougher, especially when you consider today's really bad reading on sentiment with the bull-bear spread now at a very poor for the bulls 36.8%. Only a move on the S&P 500, down to the 200-day exponential moving average at 1966, would things get more interesting for the markets. That would be far enough below that any back test of the 50's can be measured for potential failure.

For now we're still nowhere, but the job is clearly getting tougher for the bulls in terms of sustainable upside. Keep things very light.



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!

© 2015

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