Markets Not Out Of The Woods Yet

January 15th, 2014
in contributors

by Jeff Pierce, Zentrader

Yesterday's and today's (15 January 2014) rallies are cause for concern when you consider the declining volume on the averages below. The Nasdaq has basically been consolidating for the last 3 weeks trading inside a box and until it can break out of this trading range (just above the box at midday today) one should not be overloading on the long side. It's OK to buy selective longs at this point as my timing signal remains bullish on all three markets I cover, but for now I am suspicious that there isn't more downside in store.

Follow up:

Part of me thinks that the market has been self correcting by rotating sector strength and that we're about to go higher, and this belief comes from how strong my timing signals are. However the other half of me feels like the markets are exhibiting some very speculative trading with what we've been seeing in the biotech sector as of late. It's a constant challenge to determine whether we're at the start of a massive run in biotechs or at the end.

XLF and XLY also posted decline volume.



Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved