Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21
Scan Computers - How to Test New Systems CPU, GPU and Hard Drive Stability With Free Software - 4th Jun 21
Hedge Funds Getting Bullish on Gold - 4th Jun 21
THERE ARE NO SOLUTIONS When the Media is the VIRUS - 4th Jun 21
Investors Who Blindly Trust the ‘Experts’ Will Get Left Behind - 4th Jun 21
US Stock Market Indexes Consolidate Into Flagging Pattern – Watch For Aggressive Trending Soon - 4th Jun 21
Microsoft (MSFT) Stock Trend Analysis - 3rd Jun 21
No More Market Bloodbath – Beyond Cryptos - 3rd Jun 21
Bank run, or run from the banks? - 3rd Jun 21
This Chart Shows When Gold Stocks Will Explode - 3rd Jun 21
The Meaning Behind Gold’s Triple Top - 2nd Jun 21
Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like? - 2nd Jun 21
Biden’s Alternate Inflation Universe - 2nd Jun 21
What You Should Know Before Buying Car Insurance - 2nd Jun 21
Amazon (AMZN) Stock Summer Prime Day Discount Sale - 1st Jun 21
Gold Investor's Survival Guide - 1st Jun 21
Silver and Copper to Benefit from Global Electrification Push - 1st Jun 21
Will Gold Shine Under Bidenomics? - 1st Jun 21
Stock Market Buy the Dip, Again?! - 1st Jun 21
Stock Market Consolidation Ahead - 1st Jun 21
Stock Market Summer Correction Review, Crypto CRASH, Bitcoin Bear Market Initial Targets - 31st May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Big Follow Through day....

Stock-Markets / Stock Markets 2015 Oct 24, 2015 - 03:16 PM GMT

By: Jack_Steiman


The market had a big follow-through day today after yesterday's nice up-day. There are two factors that made this happen. First of all, we had great earnings after hours yesterday from Microsoft Corporation (MSFT), AT&T, Inc. (T), Inc. (AMZN) and Google Inc. (GOOG). The futures exploded on those reports. Then last night we had the Euro-Zone money-man, Mr. Draghi, promise more easy money or another round of QE for everyone. The party hats were taken out.

The European futures rose, allowing our already strong futures to remain powerful. We gapped up and spent the rest of the day pulling away from Nasdaq 4900 and S&P 500 2030/2050. Those levels should now be strong support on any move to possibly unwind overbought short-term conditions. We really shouldn't go back down that far from here. Those levels should be gone for good for a while, but those would be great support levels, if somehow we did go back down for a while. When you get the follow through day the breakout level should be rear view for quite some time to come.

The market simply got too overly pessimistic with two readings below zero on the bull-bear spread, and while it has gone up some, we started the week at only a positive 6% reading. We're nowhere near having worked off the pessimism. The number will likely now be over 10%. But that's fine. Short interest is still very high, so the market has more room before the party ends down the road a bit. A strong day for the bulls technically. The bears are feeling that lousy feeling all over again. All they can hold on to is the fact that we need unwinding to work off overbought, but sometimes the market can stay overbought. Beyond that, their next hope comes when we get the ISM Manufacturing Report on the first business day of November. So it's coming up fast. They're paying for a number below 50, or a number reflecting a new recession has begun. That would send a shock through the system with the market likely taking a very nasty hit. If the number is above 50, especially in the 51's, then the bears will have lost another ray of hope. It was a good day for the bulls. That's about the best way to sum things up.

It's worth spending a bit of time talking about the markets future. The monthly charts, once we clear the old highs on the S&P 500 at 2134, will flash as bad a negative divergence as you'll physically ever see. This should call an end to the bull market shortly, thereafter, although a move up to 2200 or so on the S&P 500 is quite possible. An over shoot if you will. That's normal protocol. The key to it all will be how we will pull back the first time from a new high. Will we or won't we see the first signs of distribution volume from the big money that controls the whole darn market. My guess is yes we will. Then when we go back up again, my guess is the selling will be even stronger off that top.

And so on and on, until the market gives way for good. This is a long and arduous process that isn't easy to understand all the time. Head fakes, and the like, but you need confirmation on volume of tops to give us the first understanding of what the future holds. I believe we're in the last leg of this six-year plus, bull market, but who knows, we'll see as we go. I think the bear market will kick sometime early in 2016, and I think the bear will be very nasty. Again, only time will tell, if I'm right or not. For now, however, the bulls are in full control of things. It's my belief we'll eventually clear 2134, and move higher before the bull market says goodbye for a long time, meaning one year or a bit longer.

Once we clear S&P 500 2079 or gap resistance with some force we should be on our way up to 2134 over time. We are somewhat overbought thus at any time we can see a pullback but they should be bought up pretty quickly. The bulls are ravenous again so selling will be bought up. We take this market a day at a time with weakness always best in terms of new buying. Keeping a bullish bias for a while longer folks.



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