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
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Getting Overbought Short Term Again Near The Breakout.....

Stock-Markets / Stock Markets 2015 Apr 16, 2015 - 10:29 AM GMT

By: Jack_Steiman


Overall, the action was solid today. It approached the breakout as the S&P 500 neared 2119, but it wasn't meant to be. The sixty-minute short-term index charts hit 70 RSI, and that was the end of the rally for the day. The market pulled back some over the last twenty minutes. No breakout today, but that doesn't mean it won't happen as the daily-index charts are looking better. Nothing bearish in terms of the oscillators. They are confirming price. This is on the daily charts.

The weekly and monthly charts remain terrible. They will not recover. So, with today's action getting stopped out at slightly overbought, the market may need a small down-day to unwind those charts without too much price erosion. If that occurs, the market should break out, but there are no guarantees, with the headaches we have from weekly and monthly charts. The word "should" would be the operative word here, but we shall see. The bulls have reason for hope.

We finally had good earnings from Intel Corporation (INTC) two nights ago. Actually it wasn't that great, but, since numbers and expectations are being bought down, this could help other big reporters to come. INTC really didn't say anything good at all, except to not take things even lower in terms of expectations. The market applauded that, since so many others are taking down expectations. Weird, but we all know the market is really another word for Disneyland, so the bulls will take it. This evening Netflix, Inc. (NFLX) is flying, while SanDisk Corp. (SNDK), another semiconductor stock, is falling some.

Too bad on SNDK, and, hopefully, it will turn up tomorrow, since the stock has already taken a strong hit from their earnings last quarter. They had already taken down expectations, but, apparently, things still aren't going very well. Some are good, and some are not so good. Well, ok, some are not so good, and others are less not so good to be blunt. The season is upon us. The good news, it seems, is it appears that the numbers and expectations are going down, making the future easier to deal with. You don't have to be very good, but you can still see your stock go higher, because they stopped being so terrible. Only in the world of the stock market, a.k.a. Disneyland.

We all know the numbers by now. On the S&P 500, the key, two levels are 2045 and 2119. We got close today to 2119, but pulled back from overbought. If, and when, we break above 2119, with force, the bulls will be in full control of the overall action. Bad economic news from around the world keeps coming in. We saw terrible growth numbers here at home from the key, New York manufacturing report, and from Asia last night. Bad is good, it appears, since all of this means more global stimulation and low rates for forever. As long as the numbers are weak, the market has a very strong chance to break out. Rates are the key. They have been and will continue to be. One day at a time as we watch to see whether the S&P 500 can make 2119 disappear in the rear-view mirror.



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