The premarkets were down -0.25% and were relatively active jumping up after the mixed not-so-good US financial’s reported this morning. The markets opened in the red but slowly recovered to flat status posting numbers in the green on moderate volume.
By 10 the ever so brief stint in the green was meet with more red as investors are convinced this may be the correction everyone has been talking about.
There is a lot going on in the World that may not be important singularly, but could cause a market threat combined and investors should be on high alert.
Key indicators fell into the ‘watch-out-below’ category at the opening this morning and may be a shot across the bow that further ‘melting’ down may be in the cards. I am not too concerned at this point and any additional correction may represent a solid buying opportunity if the averages bounce off the next support (see XLY below).
The likelihood of the markets returning to post new high remains relatively high for now and supports need to be watched carefully.
The medium 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 0.05. I would advise caution in taking any position during this uncertain period.
Investing.com members’ sentiments are 51 % bearish and Investors Intelligence sets the breath at 62.7 % bullish with the status at Bear Correction. (Chart Here )
StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 65.70. (Chart Here)
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 75.40. (Chart Here)
StockChart.com Overbought / Oversold Index ($NYMO) is at -87.35. ($NYMO) (Need to type in $NYMO)
