Market Commentary: Markets Close Down, DOW Off Triple Digits

Written by Gary

Markets slowly melted down over the afternoon session and began to sell-off 15 prior to the close with only low red volume.

By 4 pm everything was in the red including the DOW being off triple digits and the $RUT off one percent. I was expecting the markets to have started off down and stay there, which they did not until the session end. What is for tomorrow?

Normally these down session fall 3 to 4 percent and then rise back up again, but today's 'action' was a bit concerning in that 'normal' market movement was not followed. The markets could actually go either way, because the technical side of things is a go for further upside and short term indicators are definitely bearish.

The medium term indicators are leaning towards the hold side at the close and the short-term market direction meter is fractionally 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 above zero at +5.84. 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 74 % 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 57.9 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 61.96. (Chart Here) At support.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 70.80. (Chart Here) Remains at support and now testing.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 25.35. (Chart Here)Treasury Yield Curve Approaches Flattest Since 2009.

StockChart.com Overbought / Oversold Index ($NYMO) is at -58.23. (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 66.98. (Chart Here) Testing support.

The DOW at 4:00 is at 17056 down 117 or -0.68%.

The SP500 is at 1983 down 12 or -0.58%.

SPY is at 197.73 down 1.14 or -0.57%.

The $RUT is at 1119 down 11 or -0.94%.

NASDAQ is at 4509 down 19 or 0.42%.

NASDAQ 100 is at 5052 down 10 or 0.24%.

$VIX 'Fear Index' is at 14.93 up 1.24 or 9.06%. Neutral to Bearish Movement

The longer trend is up, the past months trend is net positive, the past 5 sessions have been neutral and the current bias is negative.

WTI oil is trading between 992.04 (resistance) and 90.78 (support) today. The session bias is very volatile and trending up and is currently trading down at91.44. (Chart Here)

Brent Crude is trading between 97.59 (resistance) and 96.57 (support) today. The session bias is negative, sideways and is currently trading down at 96.80. (Chart Here)

The general consensus is that gold prices will actually fall in the next twelve months (Sept to Aug. 2015). Goldman Sachs estimates that gold will fall to $1,050 an ounce, a drop of nearly 19%.

Gold fell from 1235.62 earlier to 1220.28 and is currently trading up at 1223.80. The current intra-session trend is sideways. (Chart Here)

Dr. Copper is at 3.034 falling from 3.064 earlier. (Chart Here)

The US dollar is trading between 84.87 and 84.46 and is currently trading up at84.78, the bias is currently elevated and sideways. (Chart Here)

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