Written by Gary

Premarkets were down -0.2% and didn't move much after the 'not-so-good' US financial reports this morning. Markets opened down on moderate volume and started to trend upwards to where the major averages were all in the green, but flat.

By 10 am the averages were mixed, sea-sawing along the unchanged line and generally trending up except for the small caps. Volatility is present with volume spiking to higher than normal levels and then dropping to VERY low levels. Market session direction is not well defined - caution.

Many indicators are showing markets leveling off or rounding indicating market softness that could lead to lower values and investor's should watch carefully. The SP500 MACD, $BPNYA, $BPSPX, $TNX and the $NYA all show rounding off the tops which in the past has lead to a downturn.

Our medium term indicators are leaning towards sell portfolio of non-performers at the opening and the short-term market direction meter is Bearish. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and volatility may also promote sudden reversals. The SP500 MACD has turned flat, but remains above zero at 24.48. 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 62 % Bearish (falling from 70% and now rising from 33%).

Investors Intelligence sets the breath at 52.9 % 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 15.02. (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 at56.49 %. (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 57.51. (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 69.20. (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 23.36. (Chart Here)

StockChart.com Consumer Discretionary ETF (XLY) is at 69.35. (Chart Here)

StockChart.com NYSE Composite (Liquidity) Index ($NYA) is at 10,864. (Chart Here) We are above the resistance (10,301) but is this a test of the next resistance at ~10600/900, watch to see if these numbers decline back down. If they don't then there an excellent possibility for the markets going higher now that we have topped 10900. Next stop down is 10600, 9750, then 9250, and 8500.

The longer 6 month outlook is now 50-50 sell and will remain neutral until we can see what the effects are in the Fed's game plan. Investors should employ the first thing one learns while in a foxhole; keep their head down.

The DOW at 10:15 is at 17635 down 1 or -0.01%. (Historical High 17,705.48)

The SP500 is at 2039 down 1 or -0.04%. (Historical High 2,046.18)

SPY is at 204.28 up 0.06 or 0.03%.

The $RUT is at 1172 down 2 or -0.16%.

NASDAQ is at 4683 down 6 or -0.13%.

NASDAQ 100 is at 4219 down 6 or -0.13%.

$VIX 'Fear Index' is at 14.13 up 0.82 or 6.16%. Bearish to Neutral Movement

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

WTI oil is trading between 75.83 (resistance) and 74.75 (support) today. The session bias is neutral and is currently trading down at 75.25. (Chart Here)

Brent Crude is trading between 79.47 (resistance) and 77.96 (support) today. The session bias is neutral and is currently trading down at 78.70. (Chart Here)

Gold fell from 1193.48 earlier to 1181.06 and is currently trading down at 1183.30. The current intra-session trend is trending down. (Chart Here)

Dr. Copper is at 3.044 falling from 3.061 earlier. (Chart Here)

The US dollar is trading between 88.02 (highest since 2009) and 87.24 and is currently trading down at 87.95, the bias is currently positive. (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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