Market Commentary: Markets Slip Further Down As Key Supports Are Tested

Written by Gary

Well the sell-off continues on low volume and there have been spikes of investors selling and those BTFD. A bit too early for BTFD, but we will see.

By noon the SP500 and DOW were testing the 145 DMA, long heralded as the stop-gap point of averages before heading unobstructed to the 200 DMA.

The medium term indicators are leaning towards the hold side at the midday and the short-term market direction meter is bearish. We remain mostly, at best, neutraland conservatively holding and that could change tomorrow. 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 SP500MACD has turned down, but remains below zero at -7.07. 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 67 % 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 50.6 % 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 64.00. (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 24.04. (Chart Here)

StockChart.com Overbought / Oversold Index ($NYMO) is at -67.57. (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 65.30. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at43.04 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside

The DOW at 12:15 is at 16732 down 72 or -0.43%.

The SP500 is at 1934 down 12 or -0.62%.

SPY is at 193.23 down 1.11 or -0.57%.

The $RUT is at 1081 down 4 or -0.38%.

NASDAQ is at 4390 down 32 or -0.72%.

NASDAQ 100 is at 3957 down 28 or -0.70%.

$VIX 'Fear Index' is at 17.30 up 0.59 or 3.59%. Bearish 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 negative.

WTI oil is trading between 91.02 (resistance) and 88.22 (support) today. The session bias is neutral and is currently trading up at 90.33. (Chart Here)

Brent Crude is trading between 94.37 (resistance) and 91.57 (support) today. The session bias is positive and is currently trading up at 92.61. (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 1222.82 earlier to 1209.21 and is currently trading down at 1216.90. The current intra-session trend is net neutral. (Chart Here)

Dr. Copper is at 2.993 falling from 3.038 earlier. (Chart Here)

The US dollar is trading between 86.01 and 85.60 and is currently trading down at85.77, the bias is currently net neutral. (Chart Here) Resistance made in Aug., 2013 has been broken.

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