Market Commentary: Markets Open Flat Slide On Investors Worries

Premarkets were down 0.1% and rose to even by the opening. The opening was flat, but in the green until the bears came in and the averages slid down -0.3%.

By 10 am the large caps were flat and the small caps were taking a beating being off -0.7%, but had stopped their decent for a while. Investors are concerned about the Fed making an about turn and have sold out, temporary at least. Which way is the red arrow going to go?

The medium term indicators are leaning towards the hold side at the opening and the short-term market direction meter is fractionally bearish. 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, but now I am getting very concerned. The SP500 MACD has turned flat, but remains above zero at 6.93. 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 60.4 % bullish with the status at BearConfirmed. 

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 65.54.  Very close to resistance and now flattening.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 74.40. Remains below resistance and now flatting.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 25.83. Treasury Yield Curve Approaches Flattest Since 2009.

StockChart.com Overbought / Oversold Index ($NYMO) is at –51.40. (Need to type in $NYMO) It is now around the area where it turns and starts to rise, but any thing 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 68.08. 

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. Protect thyself!