joany thursday, page-10

In America:

SP500 -2.37%
Dow Industrials -2.36%
Nasdaq100 -2.55%
Dow Transports -1.92%
Russell 2000 -2.56%
Comment: The euphoria seen in the American futures yesterday afternoon (our time) lasted about as long as an ice-cream on a Summer’s day. It was all down hill from the opening. The steep drop stopped after about two hours and the market drifted sideways, more or less, for the rest of the day. Volume was up, but still not enough to suggest a washout.

NewHighs/NewLows 68/77. NL>NH. The ratio of NH/(NH+NL) is at 46.9%. Out of the Do Not Sell Zone. New Lows are now registering panic selling.

Technical Comment on the SP500:

The SP500 finished at 1394.53. Support/resistance: 1365/1419
MACD Histogram. Above zero. Positive. But falling.
MACD. Below zero. Negative.
RSI.9 is at 33.6. Oversold.
Stochastic. 24.3. Below its signal line. Negative
CCI.14: -105.8. Oversold.

Indicators are once again negative, but they could be setting up some positive divergences. So we could be close to a bottom
The medium term trend is down. The short term trend is down. Long term trend (from October, 2012) is now in doubt.
The short term bear flag has now played out. It’s a fairly reliable pattern. My doubts about this market that I’ve been expressing in recent days have now been justified.

Once again, here’s Nasdaq100 chart after last night:

The chart has gapped down below critical horizontal support and support of the 200-Day TMA. That looks ominous. The Nazzie is now down nearly 9% since its closing high on 19 September. That’s a fair way. There might be a bit more in this, but it could be getting close to a tradable bottom.

Here's an aside: Lead headline on the SMH today: "54 Days to save the World." (With a picture of Barry O.) The Courier Mail, as always, have the priorities right. Lead headline on their web-site today: "OUR GABBA PLAN." Yah. It's summer, let's play cricket. Forget the World!

Redbacka