Written by Gary
Premarkets were up +0.2% this morning before starting a short session that closes at 1 pm today and the markets will be closed tomorrow the 25th for Christmas Holiday.
Markets opened up and generally sea-sawed sideways with the DOW reaching up for a new high on low volume.
Our medium term indicators are leaning towards sell portfolio of non-performers at the opening and the session market direction meter is 50 % Bullish climbing from 40% at the opening. 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 +9.92. 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 64 % Bearish.
Investors Intelligence sets the breath at 53.6 % 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 +30.78. (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.
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.
