Stock Market Analysis

Monday, August 03, 2015

Once Again In Danger Zone

ISM Index failed to live up to expectations today, causing an immediate knee jerk sell off reaction with investors continuing their run back to bonds, further depressing the already depressed bond yields. Even though total equities put call ratio did drop a little, its still pretty much in the uncertain zone so nobody's really feeling optimistic this week. In fact, the general market feel is getting more and more like what I suspected last week... this could be the foreplay for the market crash of 2016.

The SP-500 flirted with the 30MA line once again today. This is an extremely dangerous behavior especially with the declining top formed with the July peak. This shows that investors are now very unwilling to take the market to new highs so every bit of bullishness gets greeted by merciless selling. If the SP-500 should cross below the 30MA line this week, I would be very very careful and would actually start to prepare my Master's Stock Options Picks subscribers to downside strategically.

Market Crash Timer: YELLOW

For now, the US market remains in short term and intermediate term neutral trend within a primary bull trend.

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