redbacka's - bald as a billiard ball thursday, page-10

In America:

Dow Industrials +0.81%
Dow Transports +0.55%
SP500 +0.67%
Russell 2000 +0.7%
Nasdaq100 +1.32%

Comment: A moderate to strong day up on increasing volume.

NewHighs/NewLows 242/22. NH>NL. The ratio of NH/(NH+NL) is at 92.4%. In the Do Not Sell Zone. New Highs are once again strong; New Lows are benign.

Technical Comment on the Dow 30:

The Dow finished at 12908.7. Support/Resistance: 12764.5/12961.3.
Indicators:
Stochastic: 71.1. Above its signal line. Positive
RSI.9 is at 62.5. Positive.
MACD Histogram. Above zero. Positive.
MACD. Above zero. Positive.
CCI.14: +83.7. Back above zero. Positive.

The 10-DayEMA (blue dotted line) is above the 20-DayEMA (red dotted line). Positive.

The medium term trend is up. The short term trend is up. The long term trend line from early May has been broken to the upside.

Momentum Indicators suggest this has more upside. The shallow uptrend channel I’ve drawn also suggests at least a little more upside. If we touch that in Thursday’s trading, the market then has to contend with OpEx Day on Friday. That’s usually a narrow range day on high volume. So it looks like a bit of up then consolidation for the rest of this week. Next week is then a different story. Steady as she goes, Cap’n.

The Bernank gave some soothing words to the House Committee about double-dip recession. There’s plenty of talk from analysts reported in the media that America is about to enter or is already in a double-dip recession. The Bernank doesn’t agree. He also put on his Professorial robes and lectured them on fiscal matters and the need for independence of the Fed from politicians. That means no audit of the Fed by a pollies. I think his report on pollies said: Johnnie must listen more carefully in class and try harder. I think Johnnie is more interested in punching the boy sitting next to him.


In after hours action, IBM reported more positive than negative results and shares went up about 1%. IBM is a bell wether stock – looks good for tomorrow.

Redbacka

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