xjo survival guide to 2012 wednesday, page-27

In America:

Dow Industrials +1.47%
Dow Transports 0.92%
SP500 +1.55%
Russell 2000 +1.53%
Nasdaq100 +1.94%

Comment: The market was up strongly on higher volume. I think a lot of selling has been hidden by today’s action. We’ll have to wait for tomorrow to be sure.

NewHighs/NewLows 202/5. NH>NL. Those are good figures with NLs almost non-existent.

Technical Comment on the Dow 30:

The Dow finished at 12397.4. Remains above both the 15-Day MA the 150-Day Moving Average.
Indicators:
Stochastic: 87.8. Overbought. Could be setting up a negative divergence.
RSI.9 is at 65.1. Above 50. Positive. Negative divergence setting up?
MACD Histogram. Marginally below Zero. Neutral. Negative divergence setting up?
MACD. Above Zero. Positive.
CCI.14: +114.9. Overbought. Negative divergence setting up?

The chart finished the day below two important oblique resistance lines. Given the negative divergences which look like being set up, the path of least resistance is down. The chart may also be in an upsloping (bearish) wedge.

I wouldn’t be entering this market at this time. I think I’ll wait for a dip.

Yesterday I commented on the DAX (German) Chart. Here’s today’s update. Very overbought. Right at the 150-Day MA. Looking for a pullback.

Redbacka