I Need More Proof of a Major Market Turn

 | Nov 14, 2017 | 10:52 AM EST
  • Comment
  • Print Print
  • Print

The indices are struggling this morning as the first bounce attempt fizzled out -- even though there is no obvious news story to blame. Overseas markets were lackluster -- mainly due to some weak economic reports in China -- but this market isn't driven by news flow like that. What drives this market is unrelated to the headlines. It is primarily computers taking advantage of price movement.

The dip buying is so routine that it is likely there are some computer algorithms that are going to go to work when the dip buying stops happening. What we have to watch for are lower lows intraday and a weak close. That is what will cause the algorithms to move away from the dip buying programs.

We have had a number of weak mornings lately, but we are consistently bailed out in the afternoons. Early weakness never seems to gain momentum. The bears are very quick to believe that the turn is finally here when we have weakness like this morning, but they end up feeding the bounces that always develop later on.

I've taken a few stops on some positions and my long inventory is quite light, but I'm still not ready to load up on an index short. I am concerned about keeping my accounts as close to highs as possible and am not making any new buys right now, but I still need further proof that a significant market turn is occurring. A poor close today would be a key piece of evidence.

Columnist Conversations

Quick note: Walmart (WMT) broke the 50 and 100-day moving averages. Hello 200-day at $86 and change?
VIX is only up about 1.15 and is lower than it was at 10 AM ET when the market was only down 8. VIX seems to t...
S&P futures are trading below the 50 DMA @ 2727.40 Our first support level @ 2701 A short-term oversold...
There is some really strong flow here today on the ATVI Mar 75 calls, so I went a bit lower and took less risk...



News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.