Dow Industrials +0.25% Dow Transports +0.5% SP500 +0.5% Russell 2000 +0.75% Nasdaq100 +0.87% Comment: This looks almost two perfect ? like a super-model advertising make-up in a women?s magazine. But - I guess most of us here wouldn't complain if a super-model parked her shoes under our bed.
A big plunge below support and then reversal up to finish just above support. That support line is an equal distance from the top of the double top to the neckline.
NewHighs/NewLows came in at 14/275. Those are extreme panic selling figures. Extreme panic usually sees at least a relief rally.
The Materials Sector +0.52% and Energy Sector -0.58%. Those numbers are ?iffy? for the Australian market on Thursday. Seven of nine S&P Sectors were up, with one down and Utilities was flat. The best was Technology +1.03%. The Banking Sector was up moderately, +0.61%. Semi-conductors was stronger, +1.12%.
Europe: France -1.93% Germany -2.3% London -2.34%
Gold in U.S. Dollars is up +0.24%. Gold in Oz Dollars is up +0.08%. AUD/USD is relatively flat -0.15% to finish at 107.62. EWA (the ETF for Australian shares) was down -1.1%.
Technical Comment on the DJ Industrial Average: The DJIA finished at 11896.44. The June, 2011 low was 11862. Above critical support. Below the 13-Day MA. Negative. Below the 150-Day MA. Negative. Indicators: Stochastic: 12.2. Oversold. Levelling out. The 13-Day MA is above the 150-Day MA. Positive. RSI.9 is at 25.2. Very oversold. In a zone where reversals can occur. MACD Histogram below Zero. Negative. MACD below zero. Negative. CCI.9: -167.9. Needs to climb back above -100. Levelling out Chaikin Oscillator is at a level not seen in the past 200 trading days. That?s too low.
The ?sell? signal from Tuesday of last week continues in force. Today?s action may be a rebound signal as today was a big reversal day on high volume after the previous day?s action, which is now looking like an exhaustion day. Some to-and-fro action might be seen till a tradable trend upwards starts. Until the ?sell? signal is negated us medium term traders/investors might stay on the side-lines. But the shorts are finished, for the time being.
Here's an afterthought.
The Volatility Index isn't confirming the extreme pessimism of the major index charts. Four days ago it finished outside the Bollinger Bands. The next three days are all inside the BBs. Four days of long tails on the candles suggests a top has been reached. The RSI.9 and Stochastic have fallen below extreme high readings. Both of those are indicative of "sells" on the volatility index (buys for the major indices). It needs confirmation by a cross of the MACD Histogram below zero and a break below Monday's low. Until those two conditions are met, this could still go higher - but it looks promising.
(20min delay)