Written by Gary

The averages have been melting upwards since 10 am on falling volume, but remaining below major supports, now resistance and the 200 DMA's. Today's actions may be considered a relief from oversold conditions and mean little to the ultimate market direction.

By noon it appears this session is just a relief rally and investors need to be alert and cautious.

Our medium term indicators are leaning towards the sell to lighten portfolio of non-performers at the midday and the short-term market direction meter is bullish. We remain mostly, at best, slightly negative and conservatively bullish. The important DMA's, volume and a host of other studies have are now turning and that is still not enough for me to start shorting, but now I am getting very concerned the current downtrend will get more aggressive. The SP500 MACD has turned down, but remains below zero at -21.50. 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 39 % Bearish (falling from 70%) 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 40.8 % bullish with the status at BearConfirmed. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 43.31. (Chart Here) Below support zone and apparently going further down. Next stop was ~57 and now it is ~44, below that is where we will most likely see the markets crash. We are there and need a reversal pronto.

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 49.20. (Chart Here) In support zone and falling - doesn't look good. ~62, ~57, ~45 at which the markets are in a full-blown correction.

StockChart.com 10 Year Treasury Note Yield Index ($TNX) is at 23.31. (Chart Here)

StockChart.com Overbought / Oversold Index ($NYMO) is at -67.70. (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.

StockChart.com Consumer Discretionary ETF (XLY) is at -64.04. (Chart Here)

StockChart.com NYSE % of stocks above 200 DMA Index ($NYA200R) is at29.34 %. (Chart Here) Unless this downward trend reverses itself soon, we are going to see further downside. The next support is ~37.00 and ~25.00 below that.

StockChart.com NYSE Composite (Liquidity) Index ($NYA) is at 10281. (Chart Here)

The DOW at 12:15 is at 16456 up 135 or 0.83%.

The SP500 is at 1897 up 23 or 1.21%.

SPY is at 189.72 up 2 or 1.20%.

The $RUT is at 1075 up 25 or 2.40%.

NASDAQ is at 4275 up 61 or 1.45%.

NASDAQ 100 is at 3852 up 45 or 1.18%.

$VIX 'Fear Index' is at 21.73 down 2.91 or -11.81%. Bullish Movement

The longer trend is up, the past months trend is negative, the past 5 sessions have been negative and the current bias is trending upwards.

Saudi Arabia has reportedly been telling oil-market investors and analysts that it is ready to accept oil prices below $90 per barrel, and even as low as $80, for up to a year or two. If true, it would represent a major change in policy for Riyadh, which may be looking to slow the expansion of rivals such as the U.S. Oil was -1.45% at $84.57 at the time of writing.

WTI oil is trading between 85.59 (resistance) and 83.99 (support) today. The session bias is negative and is currently trading down at 84.12. (Chart Here)

Brent Crude is trading between 89.27 (resistance) and 86.63 (support) today. The session bias is negative and is currently trading down at 87.21. (Chart Here)

Gold rose from 1231.99 earlier to 1231.30 and is currently trading up at 1233.30. The current intra-session trend is trending down. (Chart Here)

Dr. Copper is at 3.089 rising from 3.031 earlier. (Chart Here)

The US dollar is trading between 85.93 and 85.20 and is currently trading up at 85.87, the bias is currently elevated and sideways. (Chart Here) Resistance made in Aug., 2013 (85.00) has been broken and now is support.

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