Written by Gary

By noon the markets had recovered somewhat from a sudden dip of -0.5% to -0.3% and a lot of green volume. The midday trend ‘appears' to be trending upwards, but could become sideways by this afternoon.

Investors are taking their time in deciding what they want to do towards the end of the year. Santa Claus Rally, tax questions, profit taking and a host of other decision making themes are starting to become important.

Our medium term indicators are leaning towards sell portfolio of non-performersat the midday and the short-term market direction meter is bearish. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals. The SP500 MACD has turned down, but remains above zero at 21.30. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs' to the pound.

Having some cash on hand now is not a bad strategy as market changes are happening everyday. As of now, I do not see any leading indicators that are warning of a ‘long-term' reversal in the near-term. There may be one later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market.

Investing.com members' sentiments are 70 % Bearish (falling from 70% and now rising from 33%).

Investors Intelligence sets the breath at 54.5 % bullish with the status at BearCorrection. I expect a market reversal at or before ~25.0 should the markets start to descend.

StockChart.com Overbought / Oversold Index ($NYMO) is at +9.21. But anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.