Market Timing / Market Direction Still UP!

Market timing indicators just keep humming along. The market direction remains positive although there are a few changes. Momentum is turning back up after the past couple of days. MACD is lower than yesterday but just slightly. The Ultimate Oscillator continues to rise and is showing that the market is pushing even further into overbought territory. Rate Of Change is slightly lower but both Slow and Fast Stochastics are higher than yesterday.

The market direction trend remains positive despite the market timing indicators showing strong overbought condition.

Market Timing Indicators For Jan 12 2012

Market Timing / Market Direction for Jan 12 2012

Market Timing / Market Direction Indicators For Jan 12 2012 still point up

Market Timing 1 Day S&P 500 Chart

The day started with some unsettling news on both the US Economy retail sales and the European Bonds Auctions of Italy and Spain. The best selling of the day was first thing in the morning. By 10:45 AM the selling ended. There was such little conviction on the sell side that buyers quickly returned. Once more the big names moved back up, like JNJ Stock and Visa Stock. The chart below shows today’s action which after 10:45 AM was bullish and again closed the market higher than the previous day.

Market Timing / Market Direction 1 day chart on S&P 500 for Jan 12 2012

Market Timing / Market Direction Summary For Jan 12 2012

The market remains resilient and any market timing indicators that are warning of possible market direction change are mute at best. This won’t go on for ever of course but we could see Friday and as I wrote yesterday, Monday keep pushing higher. The overbought indicators are at this stage the best market timing warning that this is not the best time to be selling puts but it is probably decent to consider out of the money covered calls for stock holders. This has been the best rally since the market turned down last Spring and when the market dips there could be some excellent put selling opportunities. I’ll be watching my market timing indicators closely over the next week as all of my January sold puts are set to expire out of the money next week.