U.S. stocks quickly shake off China- and Greece-induced worries Can bulls use the reversal as opportunity to mount a breakout on Russell 2000? Several technical indicators have room to move higher still before they get overbought Whoa! Some reversal that … Continued
Economy was probably not reason why QE2/3 got launched, stock sell-off was One month after QE1/2 ended, stocks began to act sick, prompting Fed into action Year-end rally may or may not happen; impending sell-off to test Fed’s pain threshold … Continued
Big tailwind for stocks has come from grossly oversold technical conditions Several indicators are lagging – failing to confirm recovery highs in major U.S. indices Some signs stocks want to rest; could be important as SPX sits right underneath major … Continued
Shorts continued to raise bets, with short interest at multi-year highs October 15th reversal followed by sharp advance probably caused short-covering With QE gone and broken trendline resistance on S&P 500 intact, shorts could get active again Bulls probably took … Continued
Post-October 15th reversal, equities have come too far too soon Sentiment less frothy, but in worse-case scenario has room to go a lot lower Having expended lots of energy past several sessions, bulls lack buying prowess for now Phew! Some … Continued
Bulls desperately need to retake 200-dma on S&P 500 Potential unwinding of oversold technical conditions can act as tailwind Failure to build on Wednesday’s hammer reversal pattern will mean rockier times down the line Last week, we discussed the significance … Continued
Shorts added to already-elevated positions on time to take advantage of latest decline in equities Indices in gross oversold conditions, giving bulls opportunity to try to squeeze shorts If shorts resist these pressures well, that signals rockier time ahead for … Continued
200-day moving average perceived by many as demarcation line between bull and bear market VIX surges past 17-18 and nears two-year-plus 21-22 resistance, but yet to retreat (Re) action at/near previous breakdown points to decide who wins out Defensive sectors … Continued
Equity bulls and bears lock up horns in quest to dictate near-term direction Last week’s lows saved on major indices, amidst very bullish engulfing patterns VIX once again rejected at/near 17-18; one more opportunity for bulls to take out resistance … Continued
Encouraging signs of near-term bottom VIX unable to break past 17; several other indicators grossly oversold Medium-term risks remain; SPX, DOW, RUT, NYSE have broken late-2012 trendline The Dow Industrials and the Nasdaq Composite yesterday successfully tested trendline support going … Continued