bearfridays bare necessities friday, page-4

Dow Industrials +0.54%
Dow Transports +0.00%
SP500+0.18%
Russell 2000 +0.2 7%
Nasdaq100 -0.41%

Comment: A mixed session of choppy action with the Nasdaq100 down and the Dow Industrial Average up. Volume was high - but not as high as the previous day. Panic selling was still evident with 82 new 52-Week lows on the NYSE and only 16 New Highs. We need to see the New Highs rise above 50 before being confident we have a reversal.

The Materials Sector -0.98% and Energy Sector +0.15%. (Those aren?t good numbers for Australia.) Six of nine S&P Sectors were up. The Banking Sector was in line with the Industrials +0.56%, but Semi-conductors were very weak -1.15%. That completes the mixed picture.



Europe:
France -0.38%
Germany -0.07%
London -0.76%

Gold in U.S. Dollars is flat -0.03%. Gold in Oz Dollars is flat +0.01%. AUD ? AUD/USD flat -0.02% to finish at 105.66. Major support lies around 105. Overhead resistance still needs to be overcome at around 107.7


Technical Comment on the DJ Industrial Average:
The DJIA finished at 11961.5. Back below the magical 12000 barrier.
Below the 13-Day MA. Negative.
Below the 150-Day MA. Negative.
Indicators:
Stochastic: 14.3. Oversold. Above its signal line. Still needs to rise above
20.
The 13-Day MA is above the 150-Day MA. Positive
RSI.9 is at 36.6. Needs to rise above 50.
MACD Histogram below Zero . Needs to kick up above the Zero line.
MACD below Zero. Negative. Formed a bull shoulder.
CCI.14: -93.3. Closed above -100 ? positive.

All the major indicators I look at are showing positive divergences. Even the MACD is now showing a small positive divergence. That doesn?t mean the market must go up ? but is a positive sign.

The VIX (fear index) spiked higher last night +6.61% last night. We need to see this fall back below the 200-Day Moving Average. Although the VIX is referred to as the ?Fear Index?, it is actually a measure of volatility appearing in out-of-the money options. So today?s spike up might be an indication that a lot of traders were buying both puts and calls way out of the money.

Today was an edgy day ? a slight edge to the bulls. Let?s see if we can get some follow through buying.

Good luck
Redb