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Is The DOW Giving Up Its Ghost?

-- It sure looks that way!

After a steep nosedive last Monday, the [DOW] had itself a nice little snapback rally on Wednesday, but it wasn't't nearly enough to make up for the lousy performance since early last March.

The DOW Moving-Average lines configuration remains strongly bearish [widening gap between the green line above the red line.] The RSI strength indicator appears to be stuck in bearish territory, and the MASD momentum bars are hanging from the demarcation line deep into bearish territory as well. This suggests that market participants with deep pockets and strong intestinal fortitude should short the market and those a little more timid should stay in cash and just watch the market unfolding for a while.

Check the Troika, and note that the bull-components [RSP] and [SPXL] show the same bearish configurations as does the DOW, and that is bad news for the bulls in this market.

Meanwhile, the bear in this game [SPXS] is finding traction way down at the bottom. Its MA lines configuration [green line below the red] has turned bullish for the bear (?) the RSI strength indicator is sitting in positive territory, the MACD momentum bars are above the demarcation line all of which is another positive for the bear.

So all in all, if you're a bull in this market - watch it!

Wall Street capped its worst quarter since 2012 this week, China posted its biggest three-week slide since 1992 and Greece is set for a referendum that could have adverse repercussions for the global financial markets. So it is no wonder that the confidence index [XIV] took a steep nosedive last week.

Although its MA lines configuration is still bullish, [green line below the red] the RSI strength indicator remains in bearish territory, and the MACD momentum bars slipped deep into bearish territory as well. These are all signs that the market has lost traction and is poised for a slide into the nether regions.

This market-forecasting junk-bond canary [JNK] continues its bearish outlook for the equity markets. After consolidating in April and May, it turned bearish on the market in June, and hasn't changed this forecast since. The MA lines configuration remains extremely bearish [large gap between the green line above the red.] The RSI strength indicator remains stuck in bearish territory and ditto for the MACD momentum bars as they keep below the demarcation line as they have been since last MAY.

The NASDAQ market [COMP] isn't much to crow about either. Sure, its MA lines configuration is still bullish [green line below the red] but the RSI strength indicator along with the MACD momentum bars are still in their respective bearish territories and that gives the bear the advantage.

There is still no hope for a rally in the commodities market [CRB] except that it remains sharply oversold as reflected by the MA lines configuration which shows a fair gap between the green line above the red line. This could trigger a sharp but short-lived snapback rally.

The RSI strength indicator is sitting at neutral and so are the MACD momentum bars. Not a pretty picture for the bulls in this market.

The yellow metal [GOLD] doesn't show much of a promise either. The MA lines configuration is bearish [green line above the red] the RSI strength indicator remains deep in bearish territory, and the MACD momentum bars are neutral with no advantage to either side. So the best way to figure that one out is by flipping a coin.

After consolidating between early May and mid-July, oil [WTIC] appears to be headed for lower prices. Not only has this index sold-off sharply, so had the RSI strength indicator and MACD momentum bars, which are now in their respective bearish territories. Even though the MA lines configuration is still moderately bullish, but with the green line only slightly below the red line it won't take much for this configuration to turn bearish when these lines reverse and the price of oil loses more support.

The market is in a dangerous situation here as the bulls have lost their advantage, but the bears have not yet gained theirs. So cash at the sidelines appears to be the best strategy at this stage of the game.

Still, here are some favored ETFs to keep on tap in case the market turns your way.

ETF sectors:

Financials, Semis, Technology, NASDAQ, Discretionary, Health-Care:

Leveraged bull ETFs:

S&P 500, 2x (NYSEARCA:SSO), NASDAQ 2x (NYSEARCA:QLD), Financials 2x (NYSEARCA:UYG), DOW 30, 2x (NYSEARCA:DDM). Europe 3x (NYSEARCA:EURL), Health-Care 3x (NYSEARCA:CURE), Mid-Caps 3x (NYSEARCA:MIDU), Technology 3x (NYSEARCA:TECL), Developed Markets 3x (NYSEARCA:DZK), Semis 3x (NYSEARCA:SOXL), Small-Caps 3x (NYSEARCA:TNA);

Non-Leveraged Long ETFs:

Biotech (NASDAQ:IBB), Staples (NYSEARCA:XLP), Discretionary (NYSEARCA:FDIS), Consumer-Services (NYSEARCA:IYC), Small-Caps (NASDAQ:PSCC), Consumer-Goods (NYSE:YGE), Financials (NYSEARCA:IYF), Broker-Dealer (NYSEARCA:IAI), Health-Care (NYSEARCA:XLV), Healthcare-Sector (NYSEARCA:IYH), Healthcare-Equipment (NYSEARCA:XHE);

Leveraged Bear ETFs:

S&P 500, 2x (NYSEARCA:SDS), Financials 3x (NYSEARCA:FAZ), NASDAQ 2x , Small-Caps 3x (NYSEARCA:TZA), DOW 30, 3x (NYSE:DXD), S&P 500, 3x (NYSEARCA:SPXS), Technology3x (NYSEARCA:TECS), Semis 2x (NYSE:SSG);

Non-Leveraged Short ETFs:

Commodities (NYSEARCA:LSC), S&P 500 (NYSEARCA:SH), Commodity (NYSEARCA:DDP), DOW 30 (NYSE:DOG), Euro (NYSEARCA:EUFX), Financials (SEF), China (YXI0, Mid-Caps (NYSE:MYY), Russell 2000 (NYSEARCA:RWM), Small-Caps (NYSEARCA:SBB), Equity-Bear (NYSEARCA:HDGE);

GOOD LUCK!