Written by Gary
Markets have maintained a bullish stance since this mornings opening, trading sideways on falling volume indicating a consolidation phase.
By noon there appears to be some weakness and a trending down which could be nothing more than session ‘softness'.
Indicators are still pointing that market direction can go either way at this point and would call for caution.
Our medium term indicators are leaning towards sell portfolio of non-performersat the midday and the short-term market direction meter is very bullish and steady from this morning. 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 up, but remains above zero at +1.14. 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 warnings 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 67 % Bearish.
Investors Intelligence sets the breath at 51.4 % bullish with the status at BearConfirmed. I expect a market reversal at or before ~25.0 should the markets start to descend.
StockChart.com Overbought / Oversold Index ($NYMO) is at +3.64. 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.
This $NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
