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In America:

Dow Industrials +0.11%
Dow Transports +0.31%
SP500 +0.36%
Russell 2000 +1.32%
Nasdaq100 +0.37%

Comment: The Dow Industrials was a stumpy reversal day, still just positive, but on low volume. Low volume = low demand; reversal day = selling. Not good.

NewHighs/NewLows 161/5. NH>NL. The ratio of NH/(NH+NL) is at 97%. In the no-sell zone (above 80%). NLs back below 10 – that’s a strong sign.

Technical Comment on the Dow 30:

The Dow finished at 12922. A little above resistance at 12880
Indicators:
Stochastic: 48. Above its signal line. Positive.
RSI.9 is at 52.8. Positive.
MACD Histogram. Marginally above zero. Neutral.
MACD. Below zero. Negative.
CCI.14: -9.3. Close to zero. A move above zero would be positive.

Weak effort by bulls today.

The Dow 30 has had three positive days in a row after the big drop. That three days hasn’t been able to reclaim all those one day losses.

”Topping” tends to be a process. It’s normal, if we’re at a top, for the market to have a sizeable move down then retest the recent highs. The market may be in that process. If the Dow 30 gets back up to the 13000 zone and falls again, then we could be in for a sizeable correction.

It’s natural for sellers to step in at resistance levels to test the resolve of bulls. That’s what we might have seen today. The market wasn’t quite up to 13000 (it got to 12968), but the testing might have started. Of course, the sellers might get a roasting, and the Dow 30 might soar through 13000 and head up to the 2007 highs. But for now, it’s best to wait and see.

Redbacka