thursday roll over, page-2

Above is H-A chart for SP500

In America:

SP500 +0.67%
Dow Industrials +0.39%
Nasdaq100 +0.67%
Dow Transports -0.35%
Russell 2000 +0.97%
Comment: SP500 up moderately. Volume was at the low end of recent activity. Breadth (R2K) was good. Dow Transports went against the trend due largely to a big fall in FedEx (see below). The American market is saying that Cyprus is a storm in a tea-cup – but FedEx could be a bigger worry.

NewHighs/NewLows. NH>NL. 333/17. Ratio: 95.1%. In the Do Not Sell Zone. New Lows are, once again, of no great concern.

Technical Comment on the SP500:

The SP500 finished at 1558.71. Support: 1526.7. Resistance – 1563.6
MACD Histogram. Below zero and rising. Shorters take profits.
MACD. Above zero. Positive.
RSI.9 is at 64.3. Positive.
Stochastic. 83.6. Overbought. Below its signal line. Negative.
CCI.14: +66.6. Positive.
Chaikin Money Flow: Still well above zero, but showing negative divergence.
The main up trend remains intact. Short term, the index is in limbo between support and resistance. This could lead to a double top – or simply a continuation of the uptrend. I’d be standing aside here until the waters become clearer.

In this chart the 40-Day TMA (dashed curved line) remains, for me, the key level. It’s currently at 1519.2. That’s about 2 1/2% below the current level.

Canary?

FedEx is often seen as a proxy for economic strength/weakness. Forbes describes the company: "FedEx, the second largest package-delivery company, often serves as a measure of world economic conditions because its business stretches across 220 countries and moves more than 9 million packages daily." The company gave a disappointing report last night and fell heavily through major support levels. More downside seems likely in the stock. The overall impact is still to be seen.

Redbacka