Hindenburg Omen Confirmed. December 15th, 2010.

Today the markets were bear. As the yesterday forecast says.

RESULTS

- Dow Jones                 11,457    -19   -0.17%

- Nasdaq                        2,617    -11   -0.40%

- Standard and Poor's     1,235      -6   -0.51%

- IPC                            37,677  -224   -0.59%

According to Sentimentrader the market sentiment is extremely bear. (Despite today correction). 

Indexes 

IPC

- In a trading range. 

- Difficult -and risky- times for day trading. Selectivity in issuings is extremely important. 

- Increase the risk of a correction. 

Standard and Poor's

- Lower highs. Thats not good for bulls. Chart from Bespoke: 

- Respects support in 1,235. Next supports levels: 1,228 and 1,173.

- Forms a bearish channel. Not good for bulls. 

Nasdaq 100

- Respects suppor in 2,200. If break is a bear signal. Next support 2,115. 

- In a bear channel. 

Dow Jones Industrials. 

- Respects support un 11,450. If break is very bear signal. 

- Next support 11,130. 

Put to Call Ratio. Very low again. 

For tomorrow bear or bull? 

- If you look the last weeks is a bull signal. Tomorrow follows a green candle. 

- If you look the last 6 months is a bear signal. Tomorrow follows a red candle. 

But, the most important matter. Is almost certain that a top is near (or we are in a top). See the chart: 

VIX

- Rebound in support (above the lower Bollinger band). And maybe will search the higher Bollinger band. 

- This movement could be aligned with the CPC and de Hindenburg Omen. 

And the Hindenburg Omen Confirmed today. 

- This indicate a correction in the mid-term. Maybe a huge correction. 

- Not good for the bulls

Repeat the chart of the statistics. 

Seasonality

- Dow Jones                 57%

- Standard and Poor's   57%

- Nasdaq                      48%

-- Tomorrow neutral.

- This week is Triple Witching so bull.

Conclusions

- The shor-term and mid-term trends are up.

- The bearish signals start to dominate (Hindenburg Omen Confirmed), but still bull signals. 

- The market is in bull territory and the conditions for a consistent up trend (Rally)are given. I'm optimistic (bull) for the year end. But we can be close to a top, if confirmed fades the bull future.

- In this time be very careful with the trading

-- While the liquidity continues flowing in the market will continue up. But bother me so many bear signals should mean something. But the maket is very erratic (like a crab).

- For tomorrow my feeling is bear.

IPC Sandard and Poors Dow Jones