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Short-Term Pullback or Something Worse?

  • Written by Syndicated Publisher No Comments Comments
    December 18, 2014

    A few weeks ago when we called for a short-term pullback of 4 to 5%, it was due solely to the short-term overbought condition of the major indexes above their 50-day moving averages, and that the short-term technical indicators had triggered a short-tem sell signal.

    However, another condition unexpectedly took over, the collapse of oil prices, which suddenly plunged from $75 a barrel three weeks ago, to just $56 as of yesterday’s close.

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    And now we have the crisis in Russia and collapse of its currency, and stock market, brought on in no small part by the collapse of oil prices.

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    So far, in the U.S. we have only the expected short-term pullback to alleviate the overbought condition.

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    And the short-term indicators are now in their oversold areas – if this is just a short-term pullback.


    To read my weekend newspaper column click here: Congress has Guaranteed the Secular Bear Market is Not Over

    Subscribers to Street Smart Report:

    In addition to the charts and signals in the ‘premium content’ area of today’s blog, there will be an in-depth mid-week Markets Update (stocks, gold, bonds) tomorrow in your secure area of the Street Smart Report website.

    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 ourSeasonal 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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