After showing some life in the morning, markets started to sell off and closed with little movement. According to Martha Stokes, CMT, this type of market action is indicative of small investors buying on the dip. The institutional investors that have the power to move the market remain on the sidelines, waiting to enter on better prices.
Futures this morning are positive and the DAX is slightly negative. This suggests a positive open, but no strength. The market bias indicators are neutral, which favours the downside. The market condition scans are also showing no strong directional bias. So even though the markets may open positive, there appear to be no catalysts to continue to move it up today. The most likely scenario is to see markets continue to move sideways or possibly slip downwards.
The futures are positive on the basis of reduced US jobless claims. The non-farm payroll report comes out on Friday. If these numbers are positive, it may be seen by the market as a positive since it means that the US is no longer losing jobs, so incomes are not continuing to be lost. US productivity is significantly up.
Manulife (MFC, MFC.to) has reported a substantial loss which will likely weigh on the financial sector in Canada.
| Index | Change | %Change | Level | Phase |
| TSX | +45.38 | +0.41% | 11071.20 | Warning |
| DJIA | +30.32 | +0.31% | 9802.14 | Bullish |
| Nasdaq | -1.80 | -0.09% | 2055.52 | Warning |
| SP 500 | +1.09 | +0.10% | 1046.50 | Warning |
| Russell 2000 | -7.50 | -1.31% | 563.12 | Warning |
| NYSE | +17.73 | 0.26% | 6830.43 | Warning |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a negative bias
Energy: moderate
Primary Trend: sideways to down
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Warning |
| Technology | Warning |
| Utilities | Warning |
| Energy | Bullish |
| Financials | Warning |
| Industrials | Warning |
| Materials | Warning |
| Consumer Discretionary | Warning |
Source: Telechart
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