Market Commentary: Averages Close In The Red, Flat And Directionless

Written by Gary

The averages moved sideways this afternoon in a relatively quiet trading session. The indicators are mixed meaning the markets could go either way, although this week was generally expected to be up. The SP500 closed below its 50 DMA, The DOW and NASDAQ closed below their downtrend lines - all bearish. The US dollar has declined and the oils have been positive - all bullish.

By 4 pm the markets were down, flat and directionless. Investors are waiting to see if there is going to a better BTFD session this week.

The SP500 and the DOW both had spinning top candles which can be interpreted as a change in the opposite direction which has been up for the last 3 sessions, so I hope you didn't go long today.

The medium term indicators are leaning towards the hold side at the close and the short-term market direction meter is bullish. 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 flat, but remains belowzero at -6.44. 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 58 % 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 49.5 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 53.23. (Chart Here) Below support zone and apparently going further down. Next stop was ~57 and now it is ~44, below that is where we will most likely see the markets crash.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 65.20. (Chart Here) In support zone and falling - doesn't look good. ~62, ~57, ~45 at which the markets are in a full-blown correction.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 24.25. (Chart Here)

StockChart.com Overbought / Oversold Index ($NYMO) is at -27.12. (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 66.60. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at 45.31 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside

The DOW at 4:00 is at 16992 down 18 or -0.10%.

The SP500 is at 1965 down 3 or -0.16%.

SPY is at 196.19 down 0.23 or -0.12%.

The $RUT is at 1095 down 10 or -0.91%.

NASDAQ is at 4455 down 21 or -0.47%.

NASDAQ 100 is at 4016 down 11 or -0.27%.

$VIX 'Fear Index' is at 15.36 up 0.81 or 5.57%. Bearish level, neutral Movement

The longer trend is up, the past months trend is net neutral, the past 5 sessions have been down and the current bias is flat and trending sideways.

WTI oil is trading between 90.71 (resistance) and 88.79 (support) today. The session bias is positive and is currently trading up at 89.48. (Chart Here)

Brent Crude is trading between 93.20 (resistance) and 91.25 (support) today. The session bias is positive and is currently trading down at 93.02. (Chart Here)

Gold rose from 1187.75 earlier to 1209.27 and is currently trading up at 1207.40. The current intra-session trend is positive. (Chart Here)

Dr. Copper is at 3.036 rising from 2.991 earlier. (Chart Here)

The US dollar is trading between 86.77 and 85.74 and is currently trading up at86.28, the bias is currently negative. (Chart Here) Resistance made in Aug., 2013 ($85.00) has been broken.

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