Premarket futures were down -0.15% and appeared we were going to have a down day, but wait, isn’t that supposed to happen on Tuesday’s?
The markets did open down -0.15%, but immediately reversed course and the averages moved into the green while the DOW remained in the red. By 10 am the $RUT was up +0.32%, but the SP500 remained flat, in the green on low volume. Investors are concerned that current market conditions are not ‘ripe’ for continued gains.
Lately, there have been MANY articles questioning how much longer this bull run is going to last and some that are declaring outright a bear market is in progress. In the past, these articles have actually been bullish indicators, but is it different this time?
Time to sell this stock market? Acampora, Tepper think so
Here are three top bearish views from the past week, followed by three bullish arguments. Plus give your view on the U.S. stock market and see what other MarketWatch readers are thinking.
Time to sell this stock market? Acampora, Tepper think so
The short term indicators are leaning towards the hold side at the opening. 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 SP500MACD has turned down, but remains above zero at 4.84. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a48 % buy. (Could be right.) Investing.com members’ sentiments are 65 % bearish.
In looking at the 50 DMA, the current SP500 opened above that line and the small caps remain below the 145 DMA. I can not see, as of right now where those large cap MA’s are rolling over to indicate any permanent bear run but the falling small caps are a real worry. (See deviation of large and small caps here.)The NASDAQ 100 DMA is about to cross over the 145 DMA and the small cap trend is negative and the $RUT isbelow the 200 DMA. (And trending downwards.)
Bottom line here is that I have not seen any serious bears jumping out of the woods just yet, although I am VERY concerned that ANY minor correction could turn nasty in a heart beat. One significant signal would be losses in any of the major averages that go over the ‘magic’ 3 % and then you need to pay close attention to risk-off tactics. Any market correction over 6% would be an additional signal and I can’t see having one without the other.
