Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter


Zero Follow-Through For The Bulls....Banks Under Severe Pressure....Oil Slammed Again

Stock-Markets / Stock Markets 2016 Jan 26, 2016 - 06:50 AM GMT

By: Jack_Steiman


Friday is looking more and more as if it were simply one of those bear-market rally days from deeply oversold conditions. The only problem being it wasn't that great of an up day. The real powerful, bear-market rally days can be up 2.5% to 3% in a single day. Friday was nice, but far from that type of day thus it seemed as if more upside was likely short-term. Not to be. The market started out down some and tried to fight to green before the bears came in and took it back down. The market stayed down for the better part of the day, but what was most important was how we finished.

A nice round of selling in the last hour allowed the market to close basically on the lows with the Dow down another two-hundred points. Friday gone for the most part. Not the type of action you see when you're in a bull market. Stocks like Goldman Sachs (GS), which were up huge on Friday gave back more than it gained. In one day as well. The action we've been seeing over the past three-plus weeks is purely bearish. The market tries to rally off of oversold or tries to rally off of positive divergences on the short-term, sixty-minute charts, but nothing sustained occurs to the up side.

A small rally, and sometimes even not, but mostly small gains, and then is just disappears in no time. I think by now all of you can recognize all of the changes that have taken place that show the indexes are really no longer in bull-market mode. The market may only be beginning to fall from the all-time S&P 500 2134 highs. We may not see that level for many, many years to come. Notice, I say may as you never say never in this crazy world of Disneyland, but to me it appears the highs are in for years to come. Loads of rallies along the way with some of those rallies quite strong, but the trend now is becoming clearer to all of us. It's mostly down with the usual bull-market traders trying to keep it alive. How long before they finally give up is hard to tell. They are a very stubborn group as they have been rewarded for quite some time. For now, your focus should be what today's market told us. The market isn't in a very bullish mood. The bears are slowly, but surely, making progress, but the bulls will always be in there fighting, and so you can get caught up emotionally when you shouldn't be doing so. Be careful, and keep those emotions in check as much as possible. The market has changed its stripes. What you see it truly what you get.

This evening you will see lots of charts related to the banking world. Something is very wrong there and we don't know what it is quite yet. That said, make no mistake about it folks. Something is very wrong. Study these charts and notice the moves down for just this month alone. Bear-market percentages just for this month. They are melting lower and not at all respecting support levels. Like a hot knife through butter they are melting through key support, which just doesn't happen in the world of lower P/E's. If something implodes somewhere around the world, which seems to be the message things can get really bad very fast for the entire stock market so be careful, especially playing anything related to banks or financial's. I can understand the percentage losses in these stocks if the moves occurred over a six-month period, but we're talking three weeks here. These were the stocks that took Friday's rally and made it look non-existent today. No one wants them with the bigger problem being how heavily weighted they are for the indexes.

These are the leaders. When they fail it's very hard for money to rotate around and keep the market moving upward. So many other sectors are failing, thus, the market overall is finding it harder to rotate. Transports, semiconductors, biotechnology and many more are all failing. We're close to something nasty, but we're not there yet, and we still have very compressed oscillators thus a rally can still occur at any time. Maybe Apple Inc. (AAPL) can help the market tomorrow evening when they report their numbers, but time is running out. The bulls are teetering here. They need something special and they need it fast. It's looking more and more that something nasty is lurking out there in financial land. Time will tell.

Oil didn't escape the carnage today. They were so wonderful on Friday, and that had everyone talking up the energy sector. Oil was out of the doldrums only to see larger losses today than what we saw in gains on Friday. This sector has been the absolute leading sector in terms of bearish behavior from a long time ago. Folks are continually trying to catch that all-elusive bottom. It just hasn't happened yet, and may not for far longer than anyone thought humanly possible. Another area to stay away from although most won't as any up day gets folks, yes, you guessed it, emotional! The bottom is in. Folks chase such as they did on Friday and then today happens. Wash and repeat. It's so hard to stay away as most of you want so desperately to catch every single point of upside. The angst when you think you're missing something is very interesting. The same lessons keep getting taught over and over again. try not to learn to many of them. Support at 1812. Resistance at 1909 short-term.


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!

© 2016

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