Market Commentary: Markets Closed Quietly, New Closing Highs On Large Caps

Written by Gary

Markets remained in the green and the DOW sea-sawed back and forth across the unchanged line remaining mostly flat. The small caps melted higher while the SP500 traded sideways in a narrow four point range all day on sometimes anemic volume.

By 4 pm the SP500 and DOW closed on new closing highs and the $RUT closed up over 1.1%. Relatively speaking, it has been a quiet day on Wall Street and expect it will become slower by the close of Wednesday.

As of the closing, there are no technical indicators that would signal an imminent decent. If anything we expect the markets to modestly melt up to squeeze out new highs or continue trading sideways this week.

Our medium term indicators are leaning towards sell portfolio of non-performersat the close and the short-term market direction meter is bearish, down from neutral midday and bearish this morning. 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 any volatility may also promote sudden reversals. The SP500 MACD has turned flat, but remains abovezero at 25.56. 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 54.9 % bullish with the status at BearCorrection. I expect a market reversal at or before ~25.0 should the markets start to descend.