I use one screen. But I always ask my 3 year old granddaughter to check on her iPad and give me her opinion before making a decision. She's a great chart watcher, or TAer ... whatever. She's nearly always right. :)
Comment: The Dow 30 was flat on low volume. Other indices were mixed with the Nasdaq100 the worst of them. An unbalanced market. NewHighs/NewLows 80/21. NH>NL. The ratio of NH/(NH+NL) is at 79.2% – that has now dropped out of the “no sell” zone (above 80%). That’s a bearish development. I mentioned on Saturday how the NH/(NH+NL) ratio was weakening. We now have confirmation. Technical Comment on the Dow 30:
The Dow finished at 12962.8. Index continues its flirtation with 13000. Indicators: Stochastic: 73.1.Below 80 and below its signal line. Negative RSI.9 is at 58.4. Still in the positive zone but dropping from up near 70. Caution MACD Histogram. Marginally below zero. Neutral. MACD. Below zero. Negative. CCI.14: +4.1. Close to zero. A fall below that would be negative.
The Dow 30 last night got down to 12883.9. Almost exactly level with the low of six days ago (12882.6). The BTD mob got to work and took the Dow back up almost to par at the close. Such intra-day reversals are often bullish – but we need to see follow through buying. Six days ago, similar action occurred on the Dow 30. But no follow through buying occurred. If tonight is solidly down, I think this bull rally is over.
The chart has taken on the form of a rounded top which is bearish. If the chart falls below the 18-Day MA, it’s over, red rover. Of course, bulls might decide otherwise. After today’s reversal, that’s a possibility.
I also mentioned on Saturday, that Dow Transport was in a bear flag. If broke lower out of that flag last night. That’s bearish. It still needs to break horizontal support – but not looking healthy.
Apple Inc last night finished poorly on increasing volume. It’s still above the 9-Day Moving Average, so not too much damage done. A test of support around 514/515 looks likely.
Adding it all up, the bearish scenario is gathering weight. But let’s see some follow through selling tomorrow to confirm.
In Australia today – the Ozzie Dollar broke below 107 and copper was down nearly 4%. Not hopeful. If we have a big down day, America will probably follow suit tonight.
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