Market Direction Intraday Comments for Mar 25 2013 – Weakness

Market Direction so far today is exactly what the market direction technical indicators predicted. A rise in the morning and then selling. The market direction remains weak and the continual selling is having a toll. On the weekend I noted that the stance for investing had changed back to cautionary as the weakness prevails. This brought about an excellent Spy Put Options trade this morning along with another Facebook Stock trade. The Spy Put Options trade was the best so far this year. Often with my Spy Put Options trades begin to grow in return it is also a warning that more downside may lie ahead.

If the market direction cannot push higher and hold those heights then eventually it must pull back to find support before attempting to push higher again. This is typical of a bull market and has nothing to do with a bear market. Those who keep calling for the bear market or even those who keep talking about how this rise is just a “blip” within a secular bear are merely concerning investors unnecessarily. Learning how to apply strategies to profit in any market direction is the key to forgetting the noise of the doomsayers who at every opportune moment love to be put on the airways. This morning at the open I heard from analysts who were bullish on stocks. By 11:30 they were parading out the bears again.

Forget this and concentrate on making profits in this excellent bull market through using strategies. The Spy Put Options trade this morning was just one example of wonderful opportunities that are out there.

Market Direction and Apple Stock

Note how during the weakness this morning with the Dow down 100 points Apple Stock held firm. Other stocks too held on including Microsoft Stock, JNJ Stock, CLX Stock and hosts of others. Look to these stocks to be the ultimate warnings tools. When they begin to really fall then you know the market direction is down for a while.

Market Direction S&P Chart Intraday

The 5 minute intraday chart is showing what is happening with market direction at present.

A. The rise in the morning from the enthusiasm of investors over the Cyprus deal. But they were unaware that the technical analysis showed weakness overall. They pushed the S&P to record-breaking heights which would bring in sellers.

B. Overreaction from the selling pushed the S&P too low.

C. The market direction at 3:00 PM with the S&P around 1552.

D. This is where I think the market direction should have bottomed but with the S&P 500 pushing into new heights that will always bring in sellers. These traders look for these kinds of events to unload positions which is exactly what happened. However the selling was overdone which pushed the S&P 500 too low (Point B). I am expecting the S&P to close around D or C.

market direction intraday Mar 25 2013

market direction intraday Mar 25 2013 S&P 500 5 minute chart

Market Direction Intraday Summary

The S&P 500 hit new highs today which brought in a lot of selling. Traders unloaded positions as the market direction climbed in the morning but many investors over-reacted and selling pushed the S&P 500 too low.

I am expected a weak close near the lows for the day but I do not expect to see the S&P 500 market direction close at the low for the day.

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