The Market Direction on Wednesday started off a bit slow but within 20 minutes investors moved back in and continued buying. The move in the overall market direction would have been higher had Microsoft stock and Intel stock not fallen so hard. Even HP Stock fell 6.5 percent. It was another up day marking the 4th day higher for the indexes and new all time highs once again. Meanwhile 30% of all stocks are sitting at 52 week highs and many are reaching into all time highs. Investors continue to remain bullish. Meanwhile technology and gold are now the two areas of most concern to investors. Even Goldman trimmed its target on Microsoft Stock to $27 and rated Microsoft Stock a sell. While gold rose it has become a situation of one day up and two down. The number of bears on gold is rising to major levels. Whether this means a bottom is shortly going to be in place is a tough call. So far the expected high inflation numbers gold bugs have called for from the Fed money printing has still not developed. It is hard to say at this point what will save gold from falling further and the gold miners including Barrick Gold that is reaching the lows of the last bear market.
Market Direction Closing For Apr 11 2013
The S&P 500 closed at 1593.371 up 5.64 points and the Dow closed at 14865.14 up 62.90 points. The NASDAQ closed at 3300.16, up 2.90 points and a new high.
Dow Market Direction
The S&P market direction was flat for only 15 minutes while investors tested to see if there was going to be profit taking. When this did not happen the market direction continued higher quickly and put in a 1st top. The market tried to recover that top and failed repeatedly, closing below the mid-day top but still up another 5.64 points for the day.
Market Direction Russell 2000 (IWM)
Meanwhile the small cap ETF, the Russell 2000 (IWM) moved higher and almost recovered the most recent high but then moved lower for the afternoon and closed up just 14 points.
Market Direction Technical Indicators At The Close of Apr 11 2013
Let’s take a moment now and review the market direction technical indicators at the close on the S&P 500 and view the outlook for Wednesday April 10.
For Momentum I am using the 10 period. Momentum is positive and continuing to rise.
For MACD Histogram I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a buy signal today and is rising.
The Ultimate Oscillator settings are Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
The Ultimate Oscillator is overbought and rising all of which are good signs for the bullish market direction.
Rate Of Change is set for a 21 period. Rate Of Change is still positive but it is unchanged.
For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is signaling market direction is still up but extremely overbought.
For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings but settings I set for the 1 to 3 month S&P 500 chart when it is set for daily. The Fast Stochastic is signaling that the market direction is still up but overbought. Toward the close today the Fast Stochastic turned down slightly a signal that tomorrow could see some profit taking.
Market Direction Outlook And Strategy for Apr 12 2013
The market direction remains bullish. I had expected profit taking today but the fast stochastic is now indicating we should see some profit taking on Friday. The overbought signals are everywhere but that often does not stop the market direction from moving higher. MACD issued a buy signal today so even if Friday brings some profit taking, I will be looking for opportunities as there remains no serious correction in sight. Eventually I expect something out of Europe or who knows, perhaps North Korea but at present the bulls are in charge and pushing the market direction up.
My outlook then is for the profit taking I expected on Thursday to appear on Friday. Market direction is still up.
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