Wednesday, January 15, 2014

Markets can correct in two ways – through price or through time. Just when it looked as though equity markets were ready to price correct, the bulls pulled everything right back into the trading range. Although the the shorter duration outlooks remain in bearish territory, it is very tentative as outlined below. 

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S&P 500 (SPX) SHORT TERM OUTLOOK: BEARISH

Will turn neutral if SPX records a mid-day close above 1832.01.ImageImage

Like a weather forecast, technically the SPX is bearish but it feels bullish. With the reversal followed by a reversal, the bears do not have much time to assert themselves. In order to keep the bearish status, the bears need to press the selling pressure. In all probability, the markets will continue to meander – but watch the SPX 1850 area for a possible double top failure. 

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S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BEARISH

Neutral outlook if SPX cannot close below 1838.18. ImageImageImageImage

A complete 180 degrees from yesterday. All key indices have price flipped bullish except for the Dow. The Dow can flipped bullish with a close above 16,444.76. Overall, the bears have just today to turn things around.  

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S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL

Flip to bearish if the following indices price flip on their respective weekly charts: SPX closes below 1818.32, Russell 2000 (RUT), 1146.47, Nasdaq Composite (COMPQ), 4104.74, and the Dow (DJI), 16221.14. Reinstate bullish outlook if SPX closes above 1850. (updated January 13th)

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S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH

Will flip back to neutral with a monthly close under the January price flip level of SPX 1681.55. (updated December 1st)

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