TheStreet.com RealMoney

Caught Between Opposing Factors

By Dick Arms

 About this article:
 Yesterday's many swings in both directions are evidence of a market that is being pushed by two opposed factors. We have, first, the market decline of the last few days, which has broken a key support level with an increase in volume. That implies more to the downside. We had said a move below 1075 in the S&P 500 would be a sign of weakness, and a signal to be short. But opposing that we also have an oversold situation, as measured by the shorter-term moving averages of the Arms Index, which suggest we need a rally in here. The heavier volume in on five of the last six sessions has come in preponderantly on the declining stocks, producing big daily AI numbers and suggesting a rush to sell that may be overdone. In addition, the magnetic effect of the 10,000 in the Dow is probably...

You have just read the beginning of a premium article from our RealMoney Service. To read the rest of this article and sign up for a FREE trial please click below.

ACCESS STORY & START A FREE 14-Day Trial
Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET.
Outside the U.S. and in Canada, call 1-212-321-5200.



Already a RealMoney subscriber? LOG IN.
Username: Page data is submitted securely.
Password:
Forgot your Password? Click here


100% Money-Back Guarantee
If you decide to subscribe and you're not completely satisfied with TheStreet.com RealMoney, just call us within the first 30 days of your subscription and we'll refund your full annual subscription price — guaranteed.




If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.