Wednesday, May 13, 2015

Rock'em Sock'em

The Market Trend Model ( remains with a neutral bias as the bull and bear computer algorithms battle for dominance in what has become a "Rock'em Sock'em" stock market environment.

At the moment the market indexes continue to encounter resistance at the recent price areas where the previous breakout/breakdown occurred back in April. However, the indexes also continue to see dip buyers come into the market just when it seems the market is ready fall into the dark abyss of lower prices.

The bulls can claim victory so far as the major indexes hold above their respective 10-week moving averages and the Russell 2000 has appeared to find support at the bottom of its current price channel that dates back to December 2014.

The market has managed to produce both a failed breakout and a failed breakdown in recent weeks, so I would expect the next move (whether it be higher or lower) to have more conviction. But then again, anything can happen in this bi-polar market.