Written by Gary

Markets traded, for the most part, sideways throughout the afternoon session with a slight up trend to end the day. The DOW has a new closing high of 17652.79 and the SP500 closed just below it old closing high. Volume remained low as the averages remained in the green, with the exception of $RUT, all day

By 4 pm the averages were looking good to the untrained eye, but there are a myriad of issues that could derail this bull run.

The continuing escalation of Russia in the Ukraine, financial woes in Europe and the possibility of the rising U.S. Dollar that could destabilize the global financial system.There are a lot of things going on and it shows in our market as weakness. However, again, the trend is your friend until it isn’t!

Our medium term indicators are leaning towards sell portfolio of non-performers at the close and the short-term market direction meter is very, very bearish moving up from bearish this morning. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and volatility may also promote sudden reversals. The SP500 MACD has turned up, but remains above zero at 25.02. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs’ to the pound.

Having some cash on hand now is not a bad strategy as market changes are happening everyday. As of now, I do not see any leading indicators that are warning of a ‘long-term’ reversal in the near-term. There may be one later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market.

Investing.com members’ sentiments are 65 % Bearish (falling from 70% and now rising from 33%).

Investors Intelligence sets the breath at 52.6 % bullish with the status at BearCorrection. (Chart Here ) I expect a market reversal at or before ~25.0 should the direction continue to descend.