Written by Gary

Premarkets were down -0.2% and didn’t move much after the ‘not-so-good’ US financial reports this morning. Markets opened down on moderate volume and started to trend upwards to where the major averages were all in the green, but flat.

By 10 am the averages were mixed, sea-sawing along the unchanged line and generally trending up except for the small caps. Volatility is present with volume spiking to higher than normal levels and then dropping to VERY low levels. Market session direction is not well defined – caution.

Many indicators are showing markets leveling off or rounding indicating market softness that could lead to lower values and investor’s should watch carefully. The SP500 MACD, $BPNYA, $BPSPX, $TNX and the $NYA all show rounding off the tops which in the past has lead to a downturn.

Our medium term indicators are leaning towards sell portfolio of non-performers at the opening and the short-term market direction meter is Bearish. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and volatility may also promote sudden reversals. The SP500 MACD has turned flat, but remains above zero at 24.48. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs’ to the pound.

Having some cash on hand now is not a bad strategy as market changes are happening everyday. As of now, I do not see any leading indicators that are warning of a ‘long-term’ reversal in the near-term. There may be one later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market.

Investing.com members’ sentiments are 62 % Bearish (falling from 70% and now rising from 33%).

Investors Intelligence sets the breath at 52.9 % bullish with the status at BearCorrection. (Chart Here ) I expect a market reversal at or before ~25.0 should the direction continue to descend.