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
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

Stock Market Unwinding... ISM Manufacturing On Deck....

Stock-Markets / Stock Markets 2015 Dec 01, 2015 - 09:15 AM GMT

By: Jack_Steiman


It's never a bad thing to see a market unwind from overbought conditions, especially in this particular environment, because the market is tougher and tougher these days, thus, the concept of buying at overbought is very tough indeed. Removing some of the risk to our souls is not a bad thing which equates to buying closer to, or at, oversold on those short-term, sixty-minute charts. While there's no guarantee we will ever get to the old highs at S&P 500 2134, but we still have a decent shot, since there's still no evidence of a topping pattern long-term. Understand that there's no particular requirement for that to take place, but it usually does. There is usually some type of hints being thrown our way, such as overbought with negative divergences on multiple time frames, or a massive gap down on higher volume.

Since nothing classic is taking place with regards to a topping situation, we still have to give the bulls the edge. The bears have the onus on them to ultimately remove the number one area of key support at 2020. ONLY when they can take that level away will they have officially taken control of the market. That said, 2020 is still decently far away, thus, you can get hurt just simply back-testing support, which means that you should not be over playing, even if we get too oversold on the short-term charts. Play some, for sure, but nothing aggressive. The risk reward just isn't there. We won't be getting any positive divergences to buy in to any time soon. A very tough environment, indeed, so please be aware of that and adjust accordingly. The best times are behind us.

So now we turn our attention to that very important, Fed-watching, ISM Manufacturing Report out tomorrow morning, thirty minutes into the trading day. The number expected is a very weak 50.5, after a 50.1 reading last month. Any number below 50.0 is a number reflecting an economy in recession. Hard to believe all that's expected is a half point above that recessionary level. Talk about cutting it close. The services number out later this week has been far more impressive, thus, we're an economy that's changing its stripes. The market lately is more focused on services. Still, it wouldn't be great if we're in recession. It may cause a hesitation from the Fed Yellen to raise a lousy 25 bp's.

If that were to occur the market would be VERY UNHAPPY. Let's hope we have any number above 50.0 tomorrow. I think that would be very acceptable for the market as it'll then turn its attention to the services level, which was approaching all the way up towards 60 last month. Then, once we finish off those economic numbers, we turn our attention to this Friday when we get the Jobs Report. If all of these reports come in fine, then we'll get our first rate hike in December from a reluctant Fed, but one that'll finally give in under the pressure to get going on some hikes.

Tuesday the big kick off.



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