Market Commentary: DOW Down 273, SP500 Off 30, NASDAQ Off 70

Written by Gary

At 2 pm the averages started sliding and never recovered as trading increased marginally. The SP500 stopped short of the 145 DMA and the DOW closed below the 145 DMA. The $RUT is down over 7% for 2014 and the small caps were slammed.

By 4 pm the markets were looking really tired, but I suspect the markets will put in a green day tomorrow before it looks to descend again. The bear has spoken!

European worries build as Investors sell US equities on negative outlook on the IMF.

The medium term indicators are leaning towards the hold to lighten portfolio of non-performers at the close and the short-term market direction meter is verybearish. We remain mostly, at best, neutral but now slightly negative and conservatively negative. The important DMA's, volume and a host of other studies have are now turning and that is still not enough for me to start shorting, but now I am getting very concerned. The SP500 MACD has turned down, but remains belowzero at -8.94. I would advise caution in taking any position during this uncertain period except to return your 'dogs' to the pound. Having some cash on hand now is not a bad stratagy.

Investing.com members' sentiments are 51 % Bearish (falling from 70%) and it seems to be a good sign for being bearish. The 'Sheeples' always seem to get it wrong.

Investors Intelligence sets the breath at 49.4 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 52.27. (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 64.40. (Chart Here) In support zone and rising slightly. ~62, ~57, ~45 at which the markets are in a full-blown correction.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 23.60. (Chart Here)

StockChart.com Overbought / Oversold Index ($NYMO) is at -23.34. (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 65.60. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at45.55 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside.

The DOW at 4:00 is at 16719 down 273 or -160%.

The SP500 is at 1935 down 30 or -1.51%.

SPY is at 193.09 down 3 or -1.54%.

The $RUT is at 1076 down 18 or -1.68%.

NASDAQ is at 4385 down 70 or -1.56%.

NASDAQ 100 is at 3959 down 58 or -1.44%.

$VIX 'Fear Index' is at 17.20 up 1.74 or 11.25%. Bearish Movement

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

WTI oil is trading between 90.56 (resistance) and 88.56 (support) today. The session bias is negative and is currently trading down at 88.56. (Chart Here)

Brent Crude is trading between 93.00 (resistance) and 91.42 (support) today. The session bias is negative and is currently trading down at 91.77. (Chart Here)

Gold rose and then fell and rose again from 1203.51 earlier to 1213.68 and is currently trading down at 1209.40. The current intra-session trend is neutral, but volatile. (Chart Here)

Dr. Copper is at 3.033 falling from 3.043 earlier. (Chart Here)

The US dollar is trading between 86.21 and 85.66 and is currently trading down at85.74, the bias is currently neutral and trending down. (Chart Here) Resistance made in Aug., 2013 (85.00) has been broken.

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