Written by Gary
Premarkets were down 0.4% at one point with pundits pointing to various reasons, none of which made any sense. Markets opened down 0.2% and traded sideways for the first 15 minutes.
By 10 am the averages were trending down on spurts of heavy red volume, but ultimate session direction remains in doubt.
Our medium term indicators are leaning towards sell portfolio of non-performers at the opening and the session market direction meter is 12 % bullish. 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 flat, but remains above zero at 14.13. 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 63 % Bearish.
Investors Intelligence sets the breath at 54.7 % bullish with the status at BearConfirmed. (Chart Here ) I expect a market reversal at or before ~25.0 should the markets start to descend.
StockChart.com Overbought / Oversold Index ($NYMO) is at 37.56. (Chart Here) But anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.
StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at54.15 %. (Chart Here) The next support is ~37.00, ~25.00 and ~15.00 below that. December, 2011 was the last time we saw numbers in the 20's.
