The market direction outlook for this evening is shortened as I spent time repairing some trades for members and writing two special commentaries for members.
Advance Decline Numbers
The number of news 52 week lows is now at the second highest level since August at 738 with only 8 new highs. While this may look extreme, the VIX index is not as high as it was in September or August during those plunges. In my opinion this advises there is more downside still to come.
Market Direction Technical Indicators At The Close
Stock Chart Comments:
The S&P s now at 1890 at the close and within an easy fall to the 1867 to 1870 levels which were the August lows. The chart pattern is extremely bearish with the 200 day moving average moving steadily forward but the 100 day falling lower along with the 50 day. When the 50 day crosses the 200 day it will be a major sell signal for the market.
All the technical indicators are deeply oversold but pointing lower with only the Slow Stochastic still signaling up for stocks. The Fast Stochastic on the other hand is signaling down.
Market Direction Outlook for Jan 14 2016
The market was trying to build a base or even a short-term bottom which has failed. The outlook is negative and caution is warranted for investors to protect capital from losses. The market could try a rally on Thursday as it is deeply oversold but at present any rally will fail and the market appears set to test the August lows either Thursday (which seem likely) or Friday.
Stay FullyInformed With Email Updates
Market Direction Internal Links
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals
Market Direction Portfolio Trades (Members)
Market Direction External Links
IWM ETF Russell 2000 Fund Info
Market Direction SPY ETF 500 Fund Info