The averages melted downward from the morning highs to flat and in the red. Volume has remained in the moderate level giving credence to the selling pressure or plain old profit taking.
By noon, investors were now really unsure where the market was going and I suspect we will see the volume dry up in the afternoon waiting for Mr. Market to make a move.
The short 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, only a past 6% correction (and recovery) and that is not enough for me to start shorting. The SP500 MACD has turned flat, but remains above zero at 3.90. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 24 % sell. (Remember this has been negative for weeks.) Investing.com members’ sentiments are 74 % bearish.
ÂThe DOW at 12:15 is at 16408 up 49 or 0.32%.
The SP500 is at 1863 down 0.45 or -0.03%.
SPY is at 186.27 down 0.02 or -0.01%.
The $RUT is at 1110 down 13 or -1.13%.
NASDAQ is at 4047 down 28 or -0.70%.
NASDAQ 100 is at 3519 down 13 or -0.38%.
$VIX ‘Fear Index’ is at 14.60 up 0.53 or 3.77%. Bearish Movement
(Follow Real Investing Averages at end of this article)
The longer trend is up, the past months trend is sideways, the past 4 sessions have been negative and the current bias is negative.
WTI oil is trading between 101.51 (resistance) and 100.39 (support) today. The session bias is negative and is currently trading up at 100.61.
Brent Crude is trading between 110.19 (resistance) and 108.47 (support) today. The session bias is negative and is currently trading down at 108.67.
Gold fell from 1306.49 earlier to 1292.12 and is currently trading up at 1295.20. The current intra-session trend is negative.
