Written by Gary
The DOW and SP500 both made new closing highs today as Mr. Market continues to push the averages higher. Volume tapered down after the market opening, but remained at low levels throughout the session.
By 4 pm the averages closed after a relatively quiet afternoon session.
Many investors are waiting for the other shoe to drop as there is a certain amount of bullish skepticism directly related to this continual rise and very low volume.
Our medium term indicators are leaning towards sell portfolio of non-performersat the close and the short-term market direction meter is very bullish rising from bullish at noon. 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 24.95. 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 66 % Bearish (falling from 70% and now rising from 33%).
Investors Intelligence sets the breath at 53.7 % bullish with the status at BearCorrection. I expect a market reversal at or before ~25.0 should the markets start to descend.
StockChart.com Overbought / Oversold Index ($NYMO) is at +10.92. 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.
