Stock Market Analysis

Monday, October 12, 2015

Uncertain Start of the Week...

A day without any major economic data and another quiet and uncertain day in the market. Volume was down, bond yields barely nudged, total equities put call ratio neatly in the uncertain zone, felt like a heavy mood just set over the market like a funeral parade.

Like I mentioned to paid subscribers yesterday, (Yes, I only publicly post my report every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!) the 2020 level is a significant resistance level as it marks the ceiling of this volatile sideways price channel. My Star Trading System is also producing an avalanche of bearish trades rather than bullish ones now despite it being a positive day today. As such, it is evident that the market is currently short term overbought and once again at a decisive junction. Does the potential of a topside breakout from this point make this past two months nothing more than just an intermediate correction from which the market is going to continue this historical bull run? I don't think so. The potential for market crash exists even if the market decides to go significantly higher from here before coming back down again just like it did in 2008, as such, this is still not the time to think otherwise. Furthermore, just like I said last week, I don't see the market making any significant moves without first coming back down to test the 30MA due to the overbought condition. That should coincide with the more important economic data this week; Retail sales on Wednesday and the slew of data on Thursday that includes Jobless Claims, Empire State Index and Philley Fed.

Market Crash Timer: ORANGE

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

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