sskim - tried to cash in - tuesday, page-3

Hope you all had a good long weekend. Thank you Queenie.

Market summary - overnight.

In America:

Dow Industrials +0.01%
Dow Transports +0.24%
SP500+0.07%
Russell 2000 -0.3%
Nasdaq100 +0.05%

Comment: The American market ... flat except for the small caps (Russell2000) which was down a bit. Panic selling continues with New Lows well above 50 at 90. That's a good contrarian sign.

The Materials Sector -0.59% and Energy Sector -1.58%. These were the only two sectors of the nine S&P Sectors which were down. . The Banking Sector was up strongly +0.98%, but Semi-conductors down -0.92%. This is a mixed bag of signals - something that the flat major indices hides.

Europe:
France +0.07%
Germany +0.22%
London +0.13%

The DAX (Germany) remains above the neck line of a possible head?n?shoulders top. That?s a positive.

Gold in Oz Dollars did a death dive, down -1.57%. Gold in U.S. Dollars is down -0.94%. AUD/USD up +0.64% to finish at 106.03. Major support lies around 105.

Technical Comment on the DJ Industrial Average:
The DJIA finished at 11953. Below the magical 12000 barrier.
More selling seems likely until the support of the oblique uptrend line is
reached around 11900.
Below the 13-Day MA. Negative.
Marginally below the 150-Day MA (negative).
Indicators:
Stochastic 8.3. Very Oversold. Still needs to rise above 20.
The 13-Day MA is above the 150-Day MA. Positive
RSI.9 is at 27.1. Back below 30 ? very oversold.
MACD Histogram below Zero . Needs to kick up above the Zero line.
Positive Divergence.
MACD below Zero. Negative. Formed a bear shoulder.
CCI.14: -114.2. Oversold. Positive divergence. A close above -100
would be positive.

The VIX (fear index) was up +3.98% last night. That?s marginally above the 200-Day Moving Average. We might need to see a spike above the 200DMA for this downtrend in the general stock market to finish.

Volume on the DJIA was much lower than Friday. In the middle of the day, the market dropped to the low for the day, recovered to go positive and then drifted down to be flat at the end. There wasn't much interest in this market one way or the other today. We'll have to wait till tomorrow to get some sort of direction.

The slowing in momentum (see positive divergences on all of my major indicators except the MACD) is a positive sign. A solid up day tomorrow would make a bullish three day reversal pattern.

Let's see how tomorrow goes.

Australia could, as it sometimes does, give an early warning today.

Good luck
Red