Written by Gary

The averages climbed slowly, but steadily until 2 pm where they rolled over and declined to noontime levels. Volume levels spiked to the heavy a few times as some buying was going on. We are within rock throwing distance of previous historic highs set in the middle of September and I do not see Mr. Market backing off - just yet.

By 4 pm the markets were all in the green climbing on very low volume and the HFT computer was the big contributor today. Here is an idea!

Thoughts for the day include a scenario of the averages climbing back up to their previous highs, making a correction of ~10% and climbing back up in a Santa Claus rally. My original assessment after the ~9% correction last Wednesday, was the markets were going to climb back up 'somewhat', back back down, make a double bottom and continue up and past the current highs.

Obviously, that didn't come to fruition, but I still think we will see some sort of correction before this bull run can continue. The $NYMO is higher than it has been all year and is 'ripe' for a 'correction' to began. Other indicators are either about to test a major resistance or are in the process. The timing of testing the historic high and the other indicators should reach the same point at the same time. Look for volatility.

This morning I didn't think we would see any one percent postures today and look at the DOW at +1.3%. Just goes to show how fickle this casino market is right now. Isn't guessing fun, what do you think is going to happen?

Our medium term indicators are leaning towards sell portfolio of non-performers at the close and the short-term market direction meter is bearish. We remain mostly, at best, negative and conservatively bullish, neutral in other words. The important DMA's, volume and a host of other studies have now turned and may be enough for some to start shorting. Right now now I am getting very concerned any downtrend could get more aggressive in the short-term and volatility may also promote sudden reversals. The SP500 MACD has turned up, but remains above zero at 4.81. I would advise caution in taking any position during this uncertain period and I hope you have returned your 'dogs' to the pound.

Having some cash on hand now is not a bad strategy as market changes are happening everyday. As of now, I do not see any leading indicators that are warning of a 'long-term' reversal in the near-term. There may be one later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market.

Investing.com members' sentiments are 48 % Bearish (falling from 70% and now rising from 33%) and it seems to be a good sign for being bearish. The 'Sheeples' always seem to get it wrong.

Investors Intelligence sets the breath at 45.1 % bullish with the status at BearCorrection. (Chart Here ) I expect a market reversal at or before ~25.0 should the direction continue to descend.

StockChart.com Overbought / Oversold Index ($NYMO) is at 62.65. (Chart Here)But anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. (Now were are high enough to descend again - watch out!)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at51.70 %. (Chart Here) The downside decent has reversed, but will it continue to rise above 50%? The next support is ~37.00, ~25.00 and ~15.00 below that. December, 2011 was the last time we saw numbers in the 20's.

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 48.93. (Chart Here) Below support zone but rising. Next stop was ~57, then ~44, below that is where we will most likely see the markets crash. We are seriously below 44 and need a reversal pronto as it looks like there is nothing to stop the fall until 25 and taking the markets with it.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 56.40. (Chart Here) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 23.05. (Chart Here)

StockChart.com Consumer Discretionary ETF (XLY) is at 67.46. (Chart Here)

StockChart.com NYSE Composite (Liquidity) Index ($NYA) is at 10,693. (Chart Here) We are above the resistance (10,301) but is this a test of the next resistance at ~10600/700, stay tuned. Next stop down is 9750, then 9250, and 8500.

The following article has some interesting arguments for why the market have and have not topped.

The DOW at 4:00 is at 17195 up 221 or 1.30%.

The SP500 is at 1995 up 12 or 0.62%.

SPY is at 199.39 up 1.27 or 0.64%.

The $RUT is at 1156 up 9 or 0.82%.

NASDAQ is at 4566 up 17 or 0.37%.

NASDAQ 100 is at 4101 up 10 or 0.25%.

$VIX 'Fear Index' is at 14.55 down 0.60 or -3.96%. Bullish to Neutral Movement

The longer trend is up, the past months trend is net neutral, the past 5 sessions have been positive and the current bias is positive.

WTI oil is trading between 82.09 (resistance) and 80.74 (support) today. The session bias is negative, volatile and is currently trading down at 81.02. (Chart Here)

Brent Crude is trading between 87.11 (resistance) and 85.71 (support) today. The session bias is negative, volatile and is currently trading down at 86.03. (ChartHere)

Gold fell from 1215.59 earlier to 1195.70 and is currently trading up at 1198.60. The current intra-session trend is negative and trending down. (Chart Here)

Dr. Copper is at 3.062 falling from 3.087 earlier. (Chart Here)

The US dollar is trading between 86.56 and 85.99 and is currently trading down at 86.25, the bias is currently neutral but trending down. (Chart Here) Resistance made in Aug., 2013 (~85.00) has been broken and now is support. This support has gotten much stronger since August, 2014 and isn't likely to fall easily.

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