Monday, February 06, 2012

Market Stage:

From our previous report: "Declining SBV readings are bearish and suggest the possibility of a down-move" - Today, the major indexes declined modestly.

60-day charts with a 20-period SBV are now showing flat SBV Oscillator readings on the S&P 500 and on the NASDAQ 100 indexes, advancing readings on the DJI index and declining readings on the Russell 2000 index. The following SBV values were recorded at session's end: plus 16% on the S&P 500, plus 8% on the DJI, plus 11% on the NASDAQ 100 and plus 25% on the Russell 2000. Flat SBV readings suggest possibility of changes in trend, however, SBV readings are at high positive levels. Furthermore the odds are on the bullish side. We will continue to monitor this chart setting in order to determine at which point SBV oscillator readings start to decline; this might then suggest increased odds for a coming move to the downside.

1.5-year charts with a 10-period SBV are showing flat SBV oscillator readings. The positive SBV values seen on this chart are bullish. Overall, this chart reflects bullish longer-tern market sentiment.

Market Performance:

Short-Term Outlook:

In previous short-term outlook, we had suggested: "Negative money flow on this chart would suggest the possibility of negative trading" - Today, the major indexes had a shalow decline

15-day charts (1 bar = 15 minutes) with a 16-period SBV are showing advancing SBV readings. Positive money flow on this chart would suggest the possibility of positive trading tomorrow after the market open. Similar outlook could be seen on the 30-days charts which would suggest the possibility of having positive trading session tomorrow.

Financial Press Overview:

From Reuters:

The Federal Reserve should start raising interest rates next year, a top Fed official said on Monday, arguing that many years of near-zero rates will do little to return economic output to pre-recession levels and risks causing "disaster."

The United States created jobs at the fastest pace in nine months in January and the unemployment rate unexpectedly dropped to a near three-year low, giving a boost to President Barack Obama.

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