Written by Gary
Oil stopped falling in the early part of the afternoon session and so did the equities. WTI oil has remained below 51 since it touched 50.02 earlier in the session and then went below 50 at 2:30 this afternoon. Current wisdom indicates we have NOT seen the last decline.
By 4 pm the session remained down and traded sideways until the close. The ‘oils' and disruptive issues in Europe and Greece are driving the markets and further downside is expected, however, the upside trend has not been breached – yet!
Some thoughts of manipulation are making a buzz around the analyst arm chairs in that the oils are going to be pushed higher before resuming the downward trend again. An interesting trading prospect if you are quick on the buy sell buttons.
Our medium term indicators are leaning towards sell portfolio of non-performers at the close and the session market direction meter is 100+ % bearish. We remain mostly conservatively bullish (even now), neutral in other words. Right now now I am getting very concerned any downtrend (like this one) 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 +6.29. 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 48 % Bearish.
Investors Intelligence sets the breath at 54.9 % bullish with the status at BearConfirmed. (Chart Here ) I expect a market reversal at or before ~25.0 should the markets start to descend.
