Stock indexes, gold, oil lower

spy0107.pngStock indexes closed mostly lower today, with the Dow holding to the plus side by a small amount after a late day rally. The intra-day charts of the S&P and Nasdaq showed an early sell-off followed by a rally that looked like a hammer candle might be formed for the day, and a possible bottom to this slide. More important, it looked like the probe of those previous lows were being rejected. But then selling came back into the marked, and all indexed started to extend lower, looking like the market was accepting those new lows. Very late in the session another rally occurred, lifting the indexes off the lows once again. You can see on the chart to the left, where I drew the yellow line from the late November lows, that prices on the daily chart probed an important support point and rejected it. Intra-day that low was rejected twice. It would have been nice if the price action today could have lifted the S&P to close higher than the open, thus leaving a bullish hammer candle. But the markets aren’t so nice these days. Still that rejection of the previous pivot could attract some buying if that yellow line can hold in the next couple of sessions. The momentum indicator is now oversold. If it should turn up from the oversold area, a tradeable rally could occur, maybe at least half way back up to recent highs. If a rally should occur, it would most likely represent a good shorting opportunity. If that yellow line is taken out on a closing basis that scenario is negated.
adv0107.pngThe chart above is the Nasdaq Composite with its advance/decline line plotted underneath. The longer term direction should be obvious, unless or until a major divergence between prices and the advance/decline line should occur. The S&P advance/decline looks slightly less bearish as it isn’t driving to lower lows on the latest impulse down in prices.