Written by Gary

Premarkets fractionally switched back and forth on the unchanged line leaving investors wondering if the markets have enough left in them to be able to have the SP500 close above the 100 DMA any time soon. The time is ripe for the second bottom to form so we can continue to climb into a Santa Clause Rally later in the year.

By 10 am New Home Sales came in green and the markets continued to move down to the unchanged line and then beyond. Thus placing even more emphasis on the bulls inability to push the averages upwards above the resistance.

One has to be careful what you read and wonder if these pundits actually invest in the stock market. I read the following this morning from a main-stream financial news outlet (not MSNBC) and wondered what planet they were reporting from. I know what they were trying to say, but these 'perma-bulls' were trying sensationalize an event that hasn't actually materialized yet. It is these 'Sheeples' that could ruin your portfolio if you followed them obliviously because all they are looking for is the headline.

Our medium term indicators are leaning towards sell portfolio of non-performersat the opening and the short-term market direction meter is bearish. We remain mostly, at best, negative and conservatively bullish. 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 the current downtrend will get more aggressive in the short-term and volatility may promote sudden reversals. The SP500 MACD has turned up, but remains below zero at -11.85. 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.

Investing.com members' sentiments are 46 % 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 41.9 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com Overbought / Oversold Index ($NYMO) is at 52.88. (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 in good shape to descend again - watch out!)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at46.86 %. (Chart Here) The downside decent has reversed, but will it continue to rise? The next support is ~37.00, ~25.00 and ~15.00 below that. December, 2012 was the last time we saw numbers this low.

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 43.88. (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 48.60. (Chart Here) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. The next stop now is ~37.00.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 22.43. (Chart Here)

StockChart.com Consumer Discretionary ETF (XLY) is at 65.97. (Chart Here)

StockChart.com NYSE Composite (Liquidity) Index ($NYA) is at 10,523. (Chart Here) We are above the resistance (10,301) but is this a test of the next resistance at ~10600, stay tuned. Next stop down is 9750, then 9250, and 8500.

The longer 6 month outlook is now 30-70 sell (probably should be 20-80 sell) and will remain bearish until we can see what the effects are in the Fed's game plan.Sooner or later brighter skies will return over the market. Until then, investors should employ the first thing one learns while in a foxhole; keep their head down.

The DOW at 10:15 is at 16692 up 14 or 0.09%.

The SP500 is at 1952 up 0.67 or 0.03%.

SPY is at 195.12 up 1 or 0.05%.

The $RUT is at 1115 down 1 or -0.13%.

NASDAQ is at 4459 up 7 or 0.16%.

NASDAQ 100 is at 4016 up 4 or 0.09%.

$VIX 'Fear Index' is at 17.16 up 0.66 or 3.93%. Bearish Neutral Movement

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

WTI oil is trading between 81.83 (resistance) and 80.69 (support) today. The session bias is negative and is currently trading down at 80.80. (Chart Here)

According to Rob Kurzatkowski, Senior Commodity Analyst at OptionsExpress.com, ". . . we see the December Crude Oil contract holding above the $80 level. To this point, the contract has held up at this technical support level. More stout support can be found around the $75 mark, should Oil fail to hold $80. The result of recent price weakness has been oversold technical levels. The 14-day RSI is in the mid-teens, which could be supportive of prices in the near term. In order to gain some traction,Crude Oil prices may need to post several closes north of the $85 mark."

Brent Crude is trading between 86.73 (resistance) and 85.62 (support) today. The session bias is negative and is currently trading up at 85.89. (Chart Here)

Gold rose from 1229.17 earlier to 1234.39 and is currently trading up at 1232.90. The current intra-session trend is positive. (Chart Here)

Dr. Copper is at 3.046 rising from 3.029 earlier. (Chart Here)

The US dollar is trading between 86.00 and 85.62 and is currently trading up at 85.70, the bias is currently negative. (Chart Here) Resistance made in Aug., 2013 (~85.00) has been broken and now is support.

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