Market Commentary: Markets Open Fractionally Higher, SP500 Remains Below 50 DMA

Written by Gary

Premarkets started out this morning at +0.2% and moved up to +0.4% by the opening on the lack of US financial news this morning. The SP500 opened in the green just below its 50 DMA and the DOW opened similarly and remaining below its downward trend line.

By 10 am the markets were remaining about where they opened, but directionless. Investors are sobering up and may not like what they see.

The general opinion among analysts is that the markets are going to move higher, at least in the near term, but skittish investors are watching closely what Mr. Market does today. Trend-lines, DMA's and other negative aberrations have the investor community very nervous about that log awaited 10% decline that just doesn't seem to happen.

The medium term indicators are leaning towards the hold side at the opening 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 below zero at -5.57. 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 59 % 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 53.17. (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 65.00. (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 24.47. (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 67.10. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at45.31 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside.

The DOW at 10:00 is at 17086 up 74 or 0.43%.

The SP500 is at 1976 up 9 or 0.43%.

SPY is at 197.42 up 0.85 or 0.43%.

The $RUT is at 1106 up 1 or 0.11%.

NASDAQ is at 4490 up 14 or 0.29%.

NASDAQ 100 is at 4042 up 15 or 0.36%.

$VIX 'Fear Index' is at 14.36 down 0.19 or -0.96%. 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 positive, but trending down.

WTI oil is trading between 90.40 (resistance) and 89.53 (support) today. The session bias is negative and is currently trading down at 89.57. (Chart Here)

Brent Crude is trading between 93.11 (resistance) and 94.82 (support) today. The session bias is negative and is currently trading down at 92.16. (Chart Here)

Gold rose from 1187.75 earlier to 1199.13 and is currently trading up at 1197.00. The current intra-session trend is positive. (Chart Here)

Dr. Copper is at 3.029 rising from 2.991 earlier. (Chart Here)

The US dollar is trading between 86.77 and 86.40 and is currently trading down at 86.46, the bias is currently negative. (Chart Here) Resistance made in Aug., 2013 ($85.00) has been broken.

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