nit pickin' tuesday, page-8

In America:
Dow Industrials -0.2%
Dow Transports +1.98%
SP500 +0.14%
Russell 2000 +0.16%
Nasdaq100 +0.83%

Comment: Generally a flat with Transports and Nasdaq bucking the trend. The current daily volume on the Dow 30 was at the lower end of the scale which has existed for many weeks. There simply was no interest in this market last night despite the hysteria whipped up by the press over the Greek elections. The Americans are probably now waiting on the U.S. Fed meeting (19/20 June U.S. time).

NewHighs/NewLows 94/42. NH>NL. The ratio of NH/(NH+NL) is at 69.1%. The Ratio is looking positive but New Lows still haven’t dropped out of the nervous zone.

Technical Comment on the Dow 30:
The Dow finished at 12741.8. Support/resistance: 12580/12810.
Indicators:
Stochastic: 95.5. Overbought. Caution.
RSI.9 is at 61.8. Positive.
MACD Histogram. Above zero. Positive.
MACD. Above zero. Positive.
CCI.14: +129.1. Overbought. Caution.

The 10-DayEMA (blue dotted line) is above the 20-DayEMA (red dotted line). Positive.

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

This is what I said on Saturday: "The Dow30 has now come to its next testing point. Indicators are overbought and the chart has hit the upper Bollinger Band. A number of scenarios are now possible. If this is just a normal retracement after the big May fall, then the Dow30 is likely to head back to the bottom Bollinger Band. On the other hand, it could now ride the upper Bollinger Band higher. Or it could just pause for a few days and fall back to the middle of the Bollinger Bands before once again heading higher – perhaps up to the 13000 level."

On Saturday I said I favoured the last scenario. That is still the case – but all three remain in play. A big down candle in the Dow 30 tonight probably cancels out any chance of the Index riding the BBs higher.

Let’s see how it goes.

Redbacka