Market Commentary: Averages Melting Down, At Flat Status

Written by Gary

Midday Market Commentary For 09-17-2014

Noontime markets have have melted off the morning highs in anticipation of the FMOC in a few hours. Volume is starting to get volatile ranging from anemic to moderate and I expect it will be heavy when the minutes are released as the bears and bulls jump in with their interpretation of what the ‘words’ mean.

By noon the averages had moved down to flat status, but remaining in the green. Boy, I sure wish I had a crystal ball right about now.

The medium term indicators are leaning towards the hold side at the midday and the short-term market direction meter is fractionally bearish. We remain mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned significantly and that is not enough for me to start shorting, but now I am getting very concerned. The SP500 MACD has turned down, but remains above zero at +7.28. I would advise caution in taking any position during this uncertain period although some technical indicators have starting to turn bearish.

Investing.com members’ sentiments are 69 % Bearish and it seems to be a good sign for being bullish. The ‘Sheeples’ always seem to get it wrong.

Investors Intelligence sets the breath at 59.6 % bullish with the status at Bear Confirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 64.63. (Chart Here) Very close to resistance and now falling.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 72.80. (Chart Here) Remains below resistance and now descending.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 25.74. (Chart Here) Treasury Yield Curve Approaches Flattest Since 2009.

StockChart.com Overbought / Oversold Index ($NYMO) is at -40.56. (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 Consumer Discretionary ETF (XLY) is at 68.48. (Chart Here)

Chris Ciovacco says, “As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy.” This chart clearly shows that dropping below 65.50 should be of a great concern to bullish investors. Wednesday, 9-3-2014, XLY edged up to 69.25 and was a signal that we might have another reversal as were are witnessing.

The DOW at 12:00 is at 17159 up 17 or 0.10%.

The SP500 is at 2000 up 1 or 0.06%.

SPY is at 200.59 up 0.12 or 0.05%.

The $RUT is at 1157 up 6 or 0.53%.

NASDAQ is at 4559 up 7 or 0.15%.

NASDAQ 100 is at 4057 down 0.27 or -0.01%.

How the Popular ‘VIX’ Gauge Works

$VIX ‘Fear Index’ is at 13.15 up 0.41 or 3.22%. Neutral to bearish Movement

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

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

How Oil Really Gets Priced

WTI oil is trading between 94.00 (resistance) and 92.94 (support) today. The session bias is volatile, trending down and is currently trading down at 93.02. (Chart Here) There 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 very near future. (Chart Here)

Brent Crude is trading between 99.61 (resistance) and 98.54 (support) today. The session bias is neutral, trending down and is currently trading down at 98.86. (Chart Here)

Why Gold Will Rise When The Dollar Falls

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The general consensus is that gold prices will actually fall in the next twelve months (Sept to Aug. 2015). Goldman Sachs estimates that gold will fall to $1,050 an ounce, a drop of nearly 19%.

Gold fell from 1239.91 earlier to 1234.78 and is currently trading down at 1235.00. The current intra-session trend is negative and volatile. (Chart Here)

Dr. Copper is at 3.146 falling from 3.154 earlier. (Chart Here)

The US dollar is trading between 84.32 and 84.07 and is currently trading up at 84.23, the bias is currently neutral. (Chart Here) >>>> There is a gap below between 83.92 and 83.79, watch out below as any rise is expected to be temporary.<<<<<<

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

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Real Time Market Numbers

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Written by Gary