Wednesday, February 01, 2012

Market Stage:

From our previous report: "Advancing SBV readings are bullish and suggest the possibility of a up-move." - Today, the major indexes advanced.

60-day charts with a 20-period SBV are now showing advancing SBV oscillator readings. The following SBV values were recorded at session's end: plus 16% on the S&P 500, plus 16% on the DJI, plus 26% on the NASDAQ 100 and plus 15% on the Russell 2000. Advancing SBV readings are bullish and suggest the possibility of a up-move. 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.

It is worth mentioning that today's advance generated a strong output of bullish volume on the daily charts of the all. Such a strong output of volume could affect the mid- and longer-term market sentiment. These could be a signal for a possible reversal. It may however be premature to suggest such a scenario while we see positive money flow (while SBV oscillator readings are in advance).

1.5-year charts with a 10-period SBV are showing declining SBV Oscillator readings on the S&P 500 and on the DJI indexes, flat readings on the NASDAQ 100 index and flat readings on the Russell 2000 index. While declining SBV readings suggest a possible bearish change in market sentiment, positive SBV values suggest the bulls still dominate over the longer-term. Yet, if SBV readings continue to decline this could suggest increasing odds for a developing market correction.

Market Performance:

Short-Term Outlook:

In previous short-term outlook, we had suggested: "This would suggest uncertain sentiment ... we would continue monitoring 30-day chart for clearer SBV direction and confirmation of Bearish trading." - Today, the major indexes moved higher.

5-day charts (1 bar = 5 minutes) with a 20-period SBV are showing declining SBV oscillator readings at session's end. Negative money flow on this chart would suggest the possibility of negative trading tomorrow after the market open. 30-day charts (1 bar = 30 minutes) with a 13-period SBV are showing declining SBV, however, SBV readings are at positive levels on these charts by suggesting that, even if we see negative trading at the market open, it could be short-lived unless we see stronger SBV decline on the 30-day charts.

Financial Press Overview:

From AP:

The recent run of better-than-expected economic data around the world, though still not suggesting a booming expansion, has helped lift equity markets as investors move away from a worst-case scenario for the global economy.

Stocks also got a boost after Greek Finance Minister Evangelos Venizelos said talks between Athens and its private creditors were "one formal step away" from a deal needed to avoid a messy default. Such a deal would be a significant step in removing one of the biggest worries for investors.