brainpower - tuesday, page-5

Above is a Candle Stick chart for the SP500.

In America:

SP500 -0.13%
Dow Industrials +0.05%
Nasdaq100 +0.16%
Dow Transports +0.26%
Russell 2000 -0.02%

Comment: Major indices were generally flat. Nothing untoward about volume, one way or the other. The market was up moderately after the lunch session, but gave virtually all of it back in the afternoon session. Not a good look.

In Europe.

French CAC: +0.55%
German DAX: +0.88%
London FTSE: +0.3%
Italy MIB: -0.2%
Eurotop100: +0.39%

New York Stock Exchange NewHighs/NewLows. 249/61. Ratio: 80.3%. NL less than NH. Although the ratio remains in the “Do Not Sell” Zone (above 80%), the increase of New Lows above 50 is a concern. In a bull market, I expect New Lows to be benign – somewhere below 20.. Nasdaq NH/NL 283/35. Ratio: 89%.

Technical Comment on the SP500 (closed at 1804.76)

Indicators:

MACD Histogram: Virtually flat. Momentum has dropped.
MACD: Above zero. Positive.
RSI.9 is at 66.4. Positive.
Stochastic. 93.1. Overbought.
CCI.14: +133.3. Overbought.
Money Flow: 64.3. Back above the mid-line. Bulls continue to thrive. Bears want this below 50

Support and Resistance:

40-Day TMA: 1749.8.
Major Horizontal Support: 1725.5 (-4.27%)
Minor Horizontal Support: 1771.95 (-1.69%)

Indicators are generally showing divergences.. We’re now into Turkey Season in America. This week is a 3 1/2 day trading week. Turkey Season is generally strong in the American market.

Breadth based on the NYMO is poor. New Lows continue to show uncharacteristic strength in a bull market. It’s difficult to see how the market can withstand weakening of its internal strength. It can do so for a while – but usually succumbs.

A personal note. I'm continually bemused by references in this forum to me being a leftie. I'm certainly left of Gengkis Khan, Attila the Hun, Hitler, skinhead nationalists, Pauline, Jo, and the Tea Party. If that makes me a "lefty" - so be it.

Redbacka