Market Commentary: Averages Remain Elevated, DOW Still Up Triple Digits

August 18th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 08-18-2014

By noon the averages remained elevated and trending fractionally upwards in a more or less sideways fashion. The DOW remained up triple digits as midday volume falls.


Follow up:

The medium term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500 MACD has turned up, but remains below zero at -2.28. I would advise caution in taking any position during this uncertain period although some technical indicators are starting to turn bearish.

Investing.com members' sentiments are 49 % bearish and when it switches over to bullish, as it did on Tuesday 8-5, watch for the market bottom to fall out some are saying as the markets usually go against 'Sheeple' buying high and selling low.

Investors Intelligence sets the breath at 58.3 % bullish with the status at Bear Confirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 62.82. (Chart Here) Very close to support, but rising.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 71.60. (Chart Here) Remains below support, now resistance.

The Market Is Overpriced But The Correction Will Likely Be Shallow

StockChart.com Overbought / Oversold Index ($NYMO) is at 29.57. (Chart Here) (Need to type in $NYMO) It is now around the area where it turns and start to descend, but any thing below -30 / -40 is a concern. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold.

StockChart.com Consumer Discretionary ETF (XLY) is at 67.76. (Chart Here)

Chris Ciovacco says, "As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above 67.06, all things being equal, it is a good sign for stocks and the U.S. economy." (Actually the support looks to be in the 66.88 range) We have entered an area that concerns me should the XLY drops any further. This chart clearly shows that dropping below 65.50 should be of a great concern to bullish investors.

The DOW at 12:00 is at 16827 up 164 or 0.98%.

The SP500 is at 1971 up 16 or 0.83%.

SPY is at 197.39 up 1.68 or 0.86%.

The $RUT is at 1157 up 15 or 1.34%.

NASDAQ is at 4507 up 42 or 0.95%.

NASDAQ 100 is at 4021 up 34 or 0.85%.

$VIX 'Fear Index' is at 12.40 down 0.75 or -5.70%. Bullish Movement

(Follow Real Time Market Averages at end of this article)

The longer trend is up, the past months trend is net , the past 5 sessions have been positive and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 97.41 (resistance) and 93.43 (support) today. The session bias is negative and is currently trading up at 93.77. The is a very large gap at 97.06 and these types of gaps are usually filled sooner rather than later. It would not surprise me to see the oils move back up in the near future. (Chart Here) (Look at the 15 minute.)

Brent Crude is trading between 103.65 (resistance) and 101.16 (support) today. The session bias is negative and is currently trading down at 101.36. (Chart Here)

Gold fell from 1311.30 earlier to 1296.68 and is currently trading down at 1299.50. The current intra-session trend is negative. (Chart Here)

Dr. Copper is at 3.117 rising from 3.094 earlier. (Chart Here)

The US dollar is trading between 81.66 and 81.48 and is currently trading down at 81.65, the bias is currently positive. (Chart Here)

 

The markets are still susceptible to climbing on 'Bernankellen' vapor, use caution!

"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation inequities, they should try to be fearful when others are greedy and greedy only when others are fearful." - Warren Buffett

If you would like to get advanced buy/sell tweets, sign-up in the column to the right of this post by clicking on the 'Follow' button. Write me with suggestions and I promise not to bite.

Real Time Market Numbers

Leading Stock Quotes powered by Investing.com

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

Written by Gary

 









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

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

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved