mongombolo's - curious child thursday, page-13

In America:

Dow Industrials +0.38%
Dow Transports +0.05%
SP500 +0.2%
Russell 2000 -0.09%
Nasdaq100 -0.04%

Comment: Fifth narrow range day in a row. Volume was up a tad, so the battle between bulls and bears is hotting up, with the bulls having a slight edge. But who’s going to win the war?

NewHighs/NewLows 77/13. NH
Technical Comment on the Dow Industrials:

The Dow finished at 12196.4. Above the 120-Day Exponential Moving Average (blue dotted line) at 11730. Bullish.
Indicators:
* Stochastic: 92.7. Overbought.
* RSI.9 is at 66.3. Above 50. Positive. Close to overbought level of 70.
* MACD Histogram. Above Zero. Positive. But falling
* MACD. Above Zero. Positive
* CCI.14: +101.7. Marginally into Overbought territory.

The Stochastic has been joined in overbought territory by the CCI.14. The stochastic can remain in the overbought zone for long periods of time as seen back in October. Momentum is falling as indicated by the MACD Histogram.

At this stage, this looks like consolidation. A big down day on heavy volume would negate that.

Today the Index briefly poked its head above major resistance, but it remains within the confines of support and resistance lines. 11897 and 12221.3. That’s a relatively narrow range. A break either way should determine near term direction. Wait for the break. The market is clearly waiting on the news of the EU meeting at the weekend.

In the weekend report, I suggested a watch on both the Dow Industrials and the AUD/USD to get an idea of short term direction. The currency pair remains in consolidation mode. The series of “barbed wire” candles (circled) is usually bearish.

Caution

Redbacka