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
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
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
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
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stocks Bears Defending 2100+ Pivot Still No Real Selling Ahead Of Fed And Brexit...

Stock-Markets / Stock Markets 2016 Jun 14, 2016 - 01:57 AM GMT

By: Jack_Steiman

Stock-Markets

Nothing has changed for nearly two years now, and I say that with a sense of sadness to everyone who plays this incredibly difficult game. Long-term lateral consolidations of this length can be looked at two ways. First is when a stock or index moves laterally for a long time it usually continues the trend in place. However, there is another side to see. If the consolidation is too long, nearly two years, you have to start wondering if the market is slowly turning over.


The bulls have been unable to move this market higher. The reasons are quite clear for everyone by now. Horrible negative divergences have NOT gone away on those key monthly charts, and while fed Yellen may be able to rise above them you better not get too complacent, thinking that's a slam dunk to occur. The negative divergences are quite steep in nature and need to be fully respected, even if we would like to think Yellen will make them meaningless.

I wouldn't count on that as a definite. Possible for sure as her actions have defied all logic and reality. Still, we haven't yet broken through 2134, and until we do, you must or least should respect all possibilities that exist when something so dangerous against the bulls is in place. So maybe we're just meandering before breaking out, but take in the chance that those negative divergences actually mean the oscillators are weakening as time moves along. If that's the case, then you'll be glad you didn't get overly involved. If you want to throw caution to the wind, then by all means do so, but I believe this game needs to be respected for all possibilities, and, thus, some form of appropriateness for the risk at hand should be exercised by all bulls. It's your call. Maybe being without caution will pay off handsomely. The gambler in you must decide. I don't believe in taking risks until things are at least a bit clearer. Tough market and tough times for all traders.

So on Wednesday we get the word from fed Yellen regarding interest rates. We all know she'll do nothing because of the horrible news last week from the Jobs Report. The huge miss now has her talking data-dependent nonsense once again. It would be a huge shock to the market system if she was to raise rates now. She'll talk about how things are improving, yet act as if they're not, which clearly they are not. So many economic reports are coming in poorly, and with the last Jobs Report missing so badly, the odds of her raising rates on Wednesday are as close to zero as possible. The last thing she wants to do now is to hit the S&P 500 lower with unexpected news.

She can do that once the elections are over, but she won't want to hurt the party that put her in office, so expect her to keep talking lower rates overall, even if one more has to occur this year. If the data stays weak, there won't be any more this year. If it improves, she can justify one more, but that would very likely be it. It's hard to think that anything she'll do Wednesday will be a big-market mover, so we may be stuck in this malaise for some time to come folks. Maybe Brexit will be the big-market mover. We can hope something will be, but who knows for sure. For now, there isn't too much hope for a big move coming on the fed decision. It is what it is. The range remains what it is. Boring and going nowhere.

The gap down on the SPDR S&P 500 ETF (SPY) is big from 210.86 to 212.08. That area will act as strong resistance on any attempts high in the coming days or weeks. The market can take it out, but it is a large gap and gaps of that size are normally very tough to get through, especially if you have no real catalyst. This market has acted as if all is well yet hasn't broken out, and now that we have added more resistance at that 12-point gap, the job won't be any easier for the bulls. However, until the bears can remove 2033, or the once, already-tested 200-day exponential moving average, they have nothing to feel good about. Same holds true for the bulls. Now they must remove 2120 on the S&P 500, or they too have nothing to hang their hats on. The market to nowhere is still with us in a big way.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, 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 SwingTradeOnline.com!

© 2016 SwingTradeOnline.com

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 http://www.MarketOracle.co.uk - 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