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The Market Is Still In Short-Term Limbo

  • Written by Syndicated Publisher No Comments Comments
    February 14, 2014

    ‘The bulls are in charge’ – ‘The bears are in charge’ – ‘The bulls are back in charge’.

    Come on folks. Neither side is ‘in charge’ at the moment. The market had a four week pullback of less than 5%, bounced back 3%, and isn’t making it clear whether it’s the short-term correction that has ended, or the bounce off the short-term oversold condition that has ended.

    It will have to reveal which it is to be very soon.

    The S&P 500’s correction took it beneath its 50-day m.a. and previous trendline support.

    But, its bounce-back from its oversold condition has carried it back above the trendline, and above its 50-day m.a. again, encouraging.



    But the Dow, NYSE Composite, DJ Transportation Avg., Russell 2000 did not even get down to their trendline support in the correction, and the bounce-back rally off the oversold condition did not get them back above the potential short-term resistance at the 50-day m.a. And they look to be back down at the open today. Discouraging.





    Investor Sentiment

    At least as measured by the weekly poll of its members by the American Association of Individual Investors (AAII), investor sentiment is also bouncing back and forth depending on what the market has done in the previous few days.

    With the Dow’s four day rally off its low of a week ago, this week’s AAII poll, released last night, shows the bullish percentage jumped from last week’s 27.9% to 40.2% this week, while the bearish percentage tumbled from 36.4% to only 27.3% this week.

    Northeast getting yet another weather slam.

    Federal offices is Washington closed. Stock market expects low volume day due to weather. You folks up there must be wondering when it will ever end. 

    To read my weekend newspaper column click here:  The Economic Outlook Is About More Than Just Jobs

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    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on our Seasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 


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