biggdaddy's wow wednesday, page-17

In America:

Dow Industrials -2.48%
Dow Transports -2.59%
SP500 -2.79%
Russell 2000 -3.67%
Nasdaq100 -2.61%

Comment: Another big down day with increasing volume. The October run of only one day down before the next run up has now been broken.

Fear was palpable in the markets last night with the market down early around 300 points. Then around 1.30 pm (NY Time) CNBC came out with a story that the Greek referendum was off and the market jumped 100 points in about one minute. Later in the day, the story came out that the Greek referendum was still on so the market fell back to where it was. The rumour mill is grinding away. Stories are now circulating that this will cause Europeans to move their money into U.S. Dollars, cause the Euro to crash big time and result in a run on European banks. Just to add to the drama, the Greeks sacked all their top ranking military brass and replaced them with new faces – sparking rumours that they’d averted a military coup. Oh dear. Oh dear. Don’t listen to the news. It results in dirty daks. :)

NewHighs/NewLows 12/32. NH
Technical Comment on the Dow Industrials:
The DJIA finished at 11658. That’s now down to support around 11650/11700 and at the top of a Zone of Congestion.
Above the 10-Day MA. But still above the lower Bollinger Band. So – at this stage this is still a normal pull-back.
The Dow is now below to the 200-Day MA.
Indicators:
* Stochastic: 66. Below its signal line. Plenty of room for downside movement.
* RSI.9 is at 48.6. Below its mid-line. Negative.
* MACD Histogram below Zero. Negative.
* MACD (zero lag) above zero. Positive.
* CCI.14: +1.4. Close to the zero line. Watch for a bounce – but don’t bet on it before it happens.

At this stage, this remains a pull-back in a bull rally. Today’s action triggered simple sell signals. I think there’s more down side yet – indicators have plenty of room to move down. Volume is rising – but not enough to suggest we’ve got a wash-out of weak bulls. Maybe tomorrow?

Redbacka