wild card wednesday., page-13

In America:

Dow Industrials +0.48%
Dow Transports -0.14%
SP500 +0.36%
Russell 2000 +0.17%
Nasdaq100 +0.9%

Comment: The Dow 30 opened with a big up, then it was all down hill to finish moderately. Breadth (Russell 2000) was relatively poor

Banking Index was down -1.4%. That’s not a good sign. I’ve been concerned about the overbought nature of the Bank Index for a couple of days. Today, down on an up day, is a poor indicator. It probably signals the start of a retracement for the broad market.

NewHighs/NewLows 139/23. NH>NL. The ratio of NHs/NLs continues to favour NHs – but NLs are starting to creep up. Nothing excessive yet.

Technical Comment on the Dow 30:

The Dow finished at 12482.1. Remains above both the 15-Day MA and the 150-Day Moving Average.
Major down trend line from April 2011 is at 12474.13.
Indicators:
Stochastic: 81.1. Overbought. Below its signal line. Caution
RSI.9 is at 64.8. Above 50. Positive.
MACD Histogram. Marginally below Zero. Neutral.
MACD. Above Zero. Positive.
CCI.14: +125.3. Overbought.

The Dow 30 remains at the major down trend line from April, 2011. Both the Stochastic and CCI are registering overbought. The chart seems to be forming a bearish upsloping wedge. Today’s action was not bull friendly. The Bank Index may be leading the way down.

The medium term trend is up. The short term trend is up.

Australian market today? I think we’ll struggle today.

Yesterday’s call missed badly. I knew it was in trouble after the strong opening, then the market pushed up over the first half hour opening rise. It was all to the upside after that.

I mentioned in last night’s review that yesterday’s AdvancingVolume/DecliningVolume was an extraordinarily strong 8:1. Such strength is extremely rare and can signal an overly bullish sentiment – which is bearish. :) At least in the short term.

Redbacka