Market Commentary: Markets Open Higher As Predicted, DOW Up Triple Digits

Written by Gary

Premarkets were up +0.6% this morning before the BLS slanted stats came out heralding the lowering of the US Employment Rate to 6.0% as suggested they would yesterday. Basically the futures remained the same because the rate is comprised of part-time workers. The markets opened about the same level then retreated fractionally, but remaining in the green on moderate volume.

By 10 am the averages were enjoying a nice comeback being up almost one percent.

The SP500 has climbed back above its 100 DMA and the DOW has squeaked back above its 50 DMA, not sure this will remain this way for the short term, but it is possible we have seen the bottom of this dip. The single worry that is disturbing is that many, many investors feel we have NOT seen the bottom and persistent negative thinking has a way of becoming true.

Another concern is that the US dollar is rising and that usually doesn't reflect well in the markets.

The medium term indicators are leaning towards the hold side at the opening and the short-term market direction meter is fractionally bearish. 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 -6.69. 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 63 % Bearish and it seems to be a good sign for being bullish. The 'Sheeples' always seem to get it wrong. Now they are moving towards the bullish side which is interesting.

Investors Intelligence sets the breath at 49.2 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 52.99. (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 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 24.61. (Chart Here)Treasury Yield Curve Approaches Flattest Since 2009.

StockChart.com Overbought / Oversold Index ($NYMO) is at -53.47. (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 66.81. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at42.54 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside

The DOW at 10:00 is at 16963 up 164 or 0.98%.

The SP500 is at 1965 up 19 or 0.97%.

SPY is at 196.31 up 2 or 1.01%.

The $RUT is at 1107 up 11 or 0.97%.

NASDAQ is at 4479 up 49 or 1.11%.

NASDAQ 100 is at 4031 up 45 or 1.12%.

$VIX 'Fear Index' is at 14.67 down 1.49 or -9.22%. Bullish Movement

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

WTI oil is trading between 91.78 (resistance) and 90.23 (support) today. The session bias is negative and is currently trading down at 90.43. (Chart Here)

Brent Crude is trading between 94.05 (resistance) and 92.06 (support) today. The session bias is negative and is currently trading up at 92.39. (Chart Here)

Gold fell from 1215.90 earlier to 1194.60 and is currently trading down at 1194.60. The current intra-session trend is negative. (Chart Here)

Dr. Copper is at 3.014 rising from 2.998 earlier. (Chart Here)

The US dollar is trading between 86.79 and 85.53 and is currently trading up at86.79, the bias is currently positive. (Chart Here) Resistance made in Aug., 2013 has been broken.

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