Market Direction this morning shows the weakness with the past few follow throughs. There just aren’t any. The market direction roller coaster ride of the past 3 trading sessions shows investor concern about the extent of the rally, but also the resistance the market direction faces as it pushes into 5 year highs.
Market Direction Stalled at 1500
The market direction remains stalled at 1500. In yesterday’s market direction comments I mentioned how to spot a market top and despite everything at present, technically there is no market top being put in place yet.
But you have to begin to wonder as this morning the media is filled with talk about insiders who are overly bearish and how gold is warning stock investors that a big tumble is about to happen. Perhaps all this bearish talk will push the market direction back higher and keep the rally going.
We could though be looking at most of February spent back filling which means more roller coaster rides until the market direction breaks out one way or the other.
Market Direction S&P 500 Chart Intraday
The 5 minute intraday chart from today is below. It shows the very narrow trading range so far today but what we really want to see is if the S&P 500 will close around the 1500 level to break the opening high of 1511. That would confirm the bullish sentiment.
Buying between the bulls and bears is almost exactly even with a slight edge to the bulls.
Market Direction intraday Feb 06 2013 on the S&P 500 - 5 minute chart
Market Direction Into The Close of Feb 6 2013
There is not a lot to report mid-day except the market is fighting it out between the bulls and bears. Overall the market direction is still bullish as the market continues to consolidate here. Eventually though the roller coaster ride will end. Right now I would side with the market direction moving higher, but that could change in a moment as we saw on Monday.
Cautiously bullish, which was my stance in last night’s market direction article, remains my method of investing at this point. I find there is never anything wrong with being cautious when it comes to investing no matter whether the market direction is up or down.
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