chris fords - premature capitulation - friday, page-7

In America:

Dow Industrials -0.09%
Dow Transports -0.7%
SP500 +0.11%
Russell 2000 +0.4%
Nasdaq100 +0.31%
Comment: The Dow had a narrow range day on low volume. Volume was the lowest since the Festive Season at the end of 2011.

NewHighs/NewLows 206/8. NH>NL. The ratio of NH/(NH+NL) is at 96.3% – that remains in the “no sell” zone (above 80%).

Technical Comment on the Dow 30:

The Dow finished at 12705.4. Above the 10-Day MA and well above the 150-Day Moving Average.
Indicators:
Stochastic: 70.4. A smidgin above its signal line. Neutral.
RSI.9 is at 63.6. Still below its up trend line. Caution.
MACD Histogram. Marginally below Zero. Neutral.
MACD. Marginally below Zero. Neutral.
CCI.14: +62.2. A break below zero would be negative.

The major indices had a relatively neutral day (if you ignore the low volume) and the indicators have also switched into neutral, although some may be setting up major negative divergences.

The medium term trend is up. The short term trend as measured by the 10-Day MA is up.

The Dow is now in a tight trading range: above 12810 – bullish; below 12529 – bearish. Wait for the break.

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